Doctored Photos, Fake Firms In Covid Fund Fraud

It's meant to help employees and businesses hit by the coronavirus outbreak, but police said fraudsters tried to take advantage of the government's anti-pandemic fund by filing claims using, for example, doctored photos and fake companies.

Officers said a total of 15 people were arrested on Wednesday trying to defraud the government to the tune of HK$3.8 million.

Officers from the Commercial Crime Bureau said in one case, a man was accused of filing applications for 17 nail salons which he said he owned.

Police said the businesses did not exist.

Officers said in other cases, the applicants submitted fake photos of their businesses. They are suspected of doctoring photos of other companies and posing them as their own.

Police said fake addresses were used as well.

"They have altered the address in order to show that they have been operating their business at a specific address," chief inspector Ho Yui-kuen of the Commercial Crime Bureau said.

And while the fund does not accept applications from businesses at the same address, police said some firms under the same roof used a fake address to apply.

Officers also said some of the suspects exaggerated the scale of their business to try to claim more money.

Fraudsters were said to have sought money for businesses such as retail shops, massage parlours and party rooms.

In all, three of the 47 applications were approved, involving HK$240,000. Police said the money had been frozen.

Officers said they began their investigation after spot checks conducted by the office handling applications for the anti-epidemic fund revealed possible irregularities.

The suspects are 13 men and two women. They're aged between 31 and 61.

Police did not rule out further arrests.