Hong Kong police arrest 19 in ongoing operation to crack down on MPF fraud

Police said on Tuesday they had made the first arrests in a number of cases of unscrupulous companies helping individuals to make false claims to receive Mandatory Provident Fund (MPF) benefits early.

In a still-ongoing operation, officers raided the premises of two companies and arrested 19 people aged between 22 and 56 - including 12 operators and employees as well as seven fund claimants - for falsely claiming they would leave Hong Kong for good in order to get their MPF benefits immediately.

Initial investigations indicated that at least 60 claimants sought help from these two companies, hoping to get a total of about HK$7 million early from their entitlements, said Berlin Ho Pak-ling, chief inspector of the commercial crime bureau.

The companies "make a profit by charging a commission fee between 20 and 30 per cent" from the sum of MPF benefits their clients get, he said.

They would call members of the public at random, claiming they could help them get their retirement funds immediately without hassle.

Each of the roughly 60 clients of the companies were trying to retrieve benefits ranging from HK$4,000 to HK$390,000. Some succeeded, though it's unclear how many.