'Scammers Took Fund Money For Their Own Use'

Police said they have arrested 24 people in connection with a syndicate that is suspected to have lured people into investing in a fund but used the money for its own use.

Officers said the alleged investment scam involved HK$475 million.

They said that since 2013, around 260 victims, aged between 24 and 77, had been persuaded to invest in the fund which the alleged scammers claimed was set up by a "renowned international insurance group".

The individuals reported losses of between HK$200,000 and HK$20 million.

Police said the money was not invested in the fund, but was apparently used by the scammers to buy property and repay loans.

Officers said the victims discovered in 2018 that the value of the fund had dropped over 90 percent. The fund was liquidated a year later.

As a result of the police investigation, around HK$420 million worth of assets, including cash and real estate, had been frozen.

Police said of those arrested are a practising solicitor, 11 insurance agents and alleged middlemen from the mainland. They face money laundering and fraud charges.

Most of the victims are from the mainland, and Chief Inspector Fung Pui-kei from the Commercial Crime Bureau said the force would seek help of law enforcement agencies across the border if necessary.