Six persons arrested for pyramid scheme related fraud

Police arrested two men and four women, aged between 42 and 57, in connection with pyramid scheme related fraud during an operation yesterday (August 10).

Officers of Commercial Crime Bureau arrested the persons after a series of raids involving a company on Nathan Road in Tsim Sha Tsui suspected to be involved in fraudulent cash-planting.

Initial investigations revealed that members were induced to participate in various cash-planting schemes.

One of the schemes allegedly allowed members to get $9,900 in about 12-month's time after the initial investment of $2,940. The other schemes alleged to offer members lucrative referral bonus if they could recruit more new members to invest with the company.

It was believed that mis-representations were made regarding the company's future projects in order to attract investments.

The total amount involved in these cash-planting schemes is still under investigation.

The six persons are still being detained for enquiries.

Police appeal to the public to stay alert of such pyramid scheme related fraud. Anyone who has fallen prey to the fraud but has not reported to the Police is urged to contact the Commercial Crime Bureau on 2860 5012.


Add Police Report No. 2

Issued by PPRB

END/Friday, August 11, 2006