Seven arrested over cross-boundary fraud involving listed company

Seven people were arrested by ICAC over suspected cross-boundary fraud, fictitious transactions, and false accounting involving around HK$120 million.

It was learned that the senior executives, including the chairman and an executive director, of a listed company in Hong Kong were involved.

ICAC said the two-day operation, jointly mounted with the Securities and Futures Commission (SFC) and the Macau Judiciary Police, was carried out on Monday (Aug 19) with six premises searched.

The investigation revealed the chairman of the listed company and other individuals had allegedly falsified business documents and accounting records of the company’s subsidiaries in Hong Kong and Macau, while the company’s trade receivables totaling over MOP 113 million (about HK$110 million) were reduced.

Meanwhile, the individuals concerned had also allegedly used false documents and accounting records to conceal the misappropriation of the company’s funds over HK$9 million.

As cross-boundary crimes were involved in the case, the Macau Judiciary Police also launched an investigation into relevant individuals’ suspected fraud offenses which took place in the gambling hub.

The investigation is ongoing.