Two men sentenced for money laundering

Two Indian men, aged 20 and 21, were each sentenced to 40 months' imprisonment for money laundering and using false instrument in the District Court today (August 31).

The court heard that the two defendants had used forged passports to set up bogus companies and open two company bank accounts in Hong Kong in September 2005, which was used to handle crime proceeds. After the money was deposited to those companies' accounts, it was further wired overseas.

A 60-year-old American male, who stayed in Brazil, received unsolicited emails in November 2005 and was deceived to pay an advance fee in order to obtain the alleged inheritance left to him by his late relative. The victim subsequently transferred a total of HK$ 4.3 million into the bank account under the name of the 20-year-old defendant. A report was then made to the Police in February 2006.

Two other victims, a 50-year-old Chinese male who stayed in America and a 61-year-old French woman who stayed in China, were also deceived with similar modus operadi. They transferred a total of HK$ 2.3 million to the bank accounts under the names of the two defendants in January and March 2006 respectively.

According to the record, the total amount of proceeds laundered from September 2005 to March 2006 was approximately HK$9.84 million.

Following investigations by Commercial Crime Bureau, the two defendants were arrested when they visited Hong Kong on 29 March, 2006.

Charges were laid against the two defendants with "using false instrument" and, "conspiracy to deal with property, known or believed to represent proceeds of an indictable offence".

The two defendants pleaded guilty and the sentences were handed down today.


Police Report No. 6

Issued by PPRB

End/ Thursday, 31 August 2006