Five jailed for conspiracy to defraud

Five people who had been involved in a pyramid-selling fraud scheme were each sentenced 42 months' imprisonment for conspiracy to defraud today (November 21).

The District Court heard that between February 2005 and May 2006, Police received complaints in relation to a "cash-planting scheme" promoted by a company in Kowloon Bay.

The victims, mostly elderly people, were required to pay from $2,100 to $30,000 and received coupons of the same value in return for redemption of beauty treatments and health food products. However, the products redeemed were worthless.

The victims were also promised cash rebate of 40 times or 400 percent of the sum they had invested in 18 months and were encouraged to recruit new members to receive additional cash rebate.

On May 25 last year, Police Crime Commercial Bureau's officers mounted an operation against the suspect company and arrested the five defendants, aged 29 to 60.

Police enquiries revealed that over 300 victims had joined the investment scheme and had paid the companies a sum of over $4 million.


Police Report No.4
Issued by PPRB

End/Wednesday, November 21, 2007