Man jailed over investment scam

A 52-year-old man was today (October 5) jailed for five years after pleading guilty to charges relating to an investment scam involving more than $35 million.

The High Court heard that between 2004 and 2005, the man used false foreign passports to acquire four shelf companies. He subsequently opened four bank accounts in Hong Kong for these companies. A number of overseas victims then received telephone calls from so-called investment brokers, persuading them to buy high yield monetary products or enter into selling agreements in respect of monetary products owned by the victims themselves.

When the victims had deposited advance fees for the transactions into the shelf companies' bank accounts, the investment brokers broke off contact with the victims. A total of $35.9 million was involved.

The Commercial Crime Bureau took over the case for investigations. The defendant was arrested on November 29, 2005.

The man was later charged with three counts of using a false instrument and four counts of dealing with property known or reasonably believed to represent proceeds of an indictable offence.

The Hong Kong Police Force has vowed to fight fraud investment scams.


Police Report No. 7
Issued by PPRB

Ends/Friday, October 5, 2007