The Hong Kong Police in joint operations with the Immigration Department carries out an anti-illegal worker operation on March 11, 2024. (PHOTO / HKSAR GOVERNMENT)

Hong Kong Police arrested four suspects from a fraud and money laundering ring which is believed to have been responsible for at least 41 cases involving HK$23 million ($2.94 million).

The gang, which operated in Kowloon City, was smashed in a raid by police on Tuesday, officers said at a press conference on Thursday morning.

A probe found that the syndicate had been operating for nearly a year and was highly organized. The ringleader arranged members to carry out fraud activities under the guise of offering low-interest loans, investment, online romance, and job searches

Police said they had been aware of the group for a while and discovered it had moved its operations center to an industrial building in Kowloon City earlier this year. Following an investigation, police mounted an operation on Tuesday, raiding the operations center and arresting four people, who police believe were the ring’s mastermind, driver and two core members.

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A probe found that the syndicate had been operating for nearly a year and was highly organized. The ringleader arranged members to carry out fraud activities under the guise of offering low-interest loans, investment, online romance, and job searches.

The ring took over other people’s bank accounts in return for a fee under the pretext of making quick money, using the accounts to launder the proceeds of fraud. Members of the syndicate would withdraw the money in cash, or use it to purchase high-value products and sell them on. 

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The four suspects, aged between 28 and 46, were arrested on suspicion of conspiracy to defraud and possession of a prohibited weapon. Three of them are Hong Kong residents and all claimed to be unemployed. 

During the raid, police also seized HK$330,000 in cash, 57 bank debit cards, 40 mobile phones, three computers, 45 bottles of liquor with a market value of about HK$150,000, as well as a large number of ledgers.

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Police warned of the growing trend of fraud cases the city. In 2023, the number of fraud cases increased by 42 percent year-on-year, with losses reaching HK$9 billion. 

Any person who convicted of conspiracy to defraud is liable to imprisonment for up to 14 years under the Crimes Ordinance.

Contact the writer at stephyzhang@chinadailyhk.com