16 people arrested in an operation against telephone deception
Police arrested 16 people suspected of being involved in providing their bank accounts for money laundering of telephone deception proceeds during the second phase of an operation codenamed "Youngdiver" mounted between June 1 and 6.
The first phase of the Operation Youngdiver was mounted in November, 2006 in which 68 persons were arrested for allowing their bank accounts to be used for the laundering of proceeds of telephone deceptions.
The second phase of the operation targeted more account holders and also persons who have been involved in collecting ATM cards for the telephone deception syndicate.
During the operation, nine men and three women aged between 19 and 44 were arrested for allowing their bank accounts to be used for others to launder the proceeds of telephone deception. In addition, Police arrested another four men suspected of being involved in collecting large numbers of ATM cards to be passed on to the syndicate for use in laundering the proceeds. It was believed the syndicate has been involved in opening over 170 accounts for money laundering since January 2007. Investigations also revealed that the syndicate was recruiting people to open accounts in Tuen Mun area.
It is an offence under the Organized and Serious Crimes Ordinance (OSCO) to deal with property that is known or reasonably believed to be the proceeds of crime. Anyone selling or giving bank accounts, including ATM cards and PIN to these fraudsters is liable for arrest for money laundering.
Police stressed that money laundering is a serious offence and the maximum penalty would be 14 years' imprisonment and a fine of $5 million upon conviction. Since we started prosecuting these account holders, over 50 have been found guilty and convicted at Court. The majority of these account holders were sentenced to imprisonment of four to 12 months.
Meanwhile, conspiring to assist syndicates in collecting ATM cards for use in money laundering is a more serious offence. If charged, the arrested persons will face trial in the District Court and enhanced sentencing under OSCO.
Investigations by Regional Crime Unit, Kowloon East are underway.
Police remind members of the public, especially the elderly, to contact their family members or report to the Police immediately when they receive dubious telephone calls from people asking for large sums of money.
Add Police Report No. 1
Issued by PPRB
End/ Wednesday, June 6, 2007