- Investigators seize HK$1.5 million worth of luxury handbags and watches and HK$200,000 in cash during series of raids
- Police also freeze 22 bank accounts, belonging to the two masterminds and core figures of syndicates behind scams, containing about HK$10 million
Thirty-five people have been arrested in a crackdown on bullion trading scams in which at least 40 investors in Hong Kong were swindled out of HK$57 million, according to a senior police officer.
In addition to seizing HK$1.5 million (US$192,300) worth of luxury handbags and watches and HK$200,000 in cash during a series of raids on Monday, 22 bank accounts, belonging to the two masterminds and core figures of the syndicates behind the scams and containing about HK$10 million, were frozen, police said on Tuesday.
Superintendent Bruce Hung Ngan of the commercial crime bureau said police were also considering confiscating two flats, owned by the ringleaders and valued at more than HK$20 million.
The arrests were the result of a year-long operation in which an undercover police agent worked at several local investment companies so as to gather evidence.
According to police, 40 victims " 27 men and 13 women " were lured into paying to trade gold on the London commodities market.
Describing the use of an agent against such schemes as "rare", Hung added: "By sending an undercover agent, police were able to obtain more direct evidence and ascertain the operations of these London gold investment scams."
He said the agent was deployed early last year in light of the rising number of reports of such scams in 2018.
The bureau's Senior Inspector Tang Kwok-hin said the biggest loss was HK$6.12 million and scammers took six months to one year to cheat each victim.
Police said many victims were lured into signing authorisation letters which enabled sales agents of the investment firms to conduct frequent transactions to earn commissions until the target's money was exhausted.
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Hung said one company transferred victims' money into the bank accounts of its mastermind, senior executives and sales agent.
"The money was used to buy expensive items such as luxury handbags and watches or pay for personal expenditures," he said.
On Monday, more than 200 officers swooped into action, raiding 53 locations including the offices of two of the firms in Kwun Tong and Wan Chai, and arrested 35 people.
The suspects " 29 men and six women " included masterminds of two syndicates and directors and senior executives of the investment firms. They were arrested for offences such as conspiracy to defraud and money laundering.
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In the homes of the masterminds and core figures, officers seized HK$200,000 in cash, 25 luxury handbags worth HK$1 million and six watches valued at more than HK$500,000. Police also seized computers, transaction documents and contracts.
Hung said the suspects were from different syndicates, adding that investigations were continuing and further arrests were possible.
Police urged investors to seek advice from professionals and understand all the terms and details of any authorisation documents and contracts before signing them.
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