Persons arrested for conspiracy to defraud

Police Commercial Crime Bureau (CCB) officers today (September 4) arrested eight persons in connection with a suspected defraud case in which a number of companies were being deceived by a business directory company.

About 300 victimized companies complained to CCB since late 2006 that they have received unsolicited letters from a directory company inviting them to verify and update their companies' details for inclusion in a publication similar to the yellow pages.

However, the letter also contained a paragraph printed with very small letters outlining the terms and conditions, which require the victimized companies to pay for subscribing the advertising service.

The paragraph was often unnoticed by the victims who only realized that when they subsequently received invoices from the company.

After investigation, CCB carrying out an operation today and arrested three men and five women, aged between 19 and 41. They included the director, shareholder, general manger, and customer representatives of the company.

Investigation revealed that 41 complainants have already paid over HK$540,000 for advertisement or cancellation fees.

All the arrested persons have been released on bail pending for further investigation.

Police appealed to the public, in particular small and medium enterprises, to pay special attention to the same modus operandi and not fallen prey to the same possible fraud.


Police Report No.4
Issued by PPRB

End/Tuesday, September 04, 2007.