Wallis Wang

Eighteen suspects have been arrested in a crackdown on syndicates suspected of utilizing faux paperwork to take out HK$193 million government-guaranteed financial institution loans that had been launched to assist companies hit by Covid.

The suspects – 12 males and 6 girls – had been arrested for conspiracy to defraud and cash laundering, police stated yesterday.

Superintendent Yip Wing-lam of police’s fraud division stated some firms exaggerated their variety of staff and their salaries when making use of for loans.

In a single case, an organization with solely two employees that had a month-to-month income of HK$10,000 claimed it needed to pay HK$6 million in wages yearly – indicating every employee earned as a lot as HK$250,000 monthly.

”A cha chaan teng additionally claimed that every of its employees might earn HK$80,000 to HK$90,000 monthly,” Yip stated. “The exaggerated salaries alone won’t have alerted us, however a few of the firms submitted faux paperwork and proof, which made us suspicious and begin to examine.”

Some firms used the non-public data of former staff who left Hong Kong to open new MPF accounts, with the intention to exaggerate the variety of staff and get extra loans.

Senior inspector Mak Wai-kwong of the Industrial Crime Bureau’s fraud division stated the syndicates used shell firms by utilizing faux paperwork together with faux payroll information and operation reviews.

Through the investigation, police discovered administrators of shell firms didn’t use the loans for firm operations and as a substitute transferred the cash to their very own private accounts to purchase luxurious items, Mak stated.

He added that one firm obtained HK$5 million in loans and used half to purchase luxurious watches, which was towards the mortgage’s intention to assist Covid-hit companies.

Yip stated police have launched 4 rounds of operations since final yr and arrested a complete of 127 folks – 92 males and 35 girls – in 11 circumstances, together with masterminds of syndicates, firm administrators and staff and financial institution employees. A complete of HK$1.four billion loans had been concerned within the crime, Yip stated.

Beneath the scheme operated by the Hong Kong Mortgage Company, greater than 53,000 loans have been accredited thus far, involving HK$99 billion, with 32,000 enterprises benefiting.

wallis.wang@singtaonewscorp.com