Two employees of Alliance Medical Group have been arrested for allegedly violating the Trade Descriptions Ordinance over the private health service provider’s suspected closure, customs officials said yesterday.

As of yesterday at 5pm, customs and police had received 1,686 complaints involving HK$7.2 million in prepayments.

Customs said their investigations showed the group was still selling healthcare services to customers and accepting pre-payments days before it ceased operations.

Tsang Kin-wah, Customs and Excise Department unfair trade practice investigation divisional commander.

The authorities arrested a 61-year-old man, the group’s director, and a 31-year-old woman, the group’s secretary. They were released on bail pending further investigations.

The private healthcare provider, known for offering a wide range of infant and adult vaccination packages, unexpectedly ceased operations on May 1, closing its two clinics in Tsim Sha Tsui and Sha Tin without prior notice.

Its communication channels, including messaging groups and inquiry hotlines, have gone unanswered, while its social media platforms have also been deactivated.

This abrupt closure has left many customers, who had pre-purchased vaccination packages, feeling stranded and suspicious of potential fraud.

Regarding Alliance Medical Group’s operational irregularities, affected customers have established a WhatsApp support group for victims, which has grown to over 1,000 members.

Chief Executive John Lee Ka-chiu announced during the executive council meeting on May 6 that the government would review the adequacy of current regulatory measures for prepaid services, expressing serious concern over the incident.

To address the situation, the government has established a task force that includes officials from various departments, such as the Security Bureau, the Commerce and Economic Development Bureau, the Customs, and the Consumer Council, to investigate the closures and provide support to those affected.

(Cheng Wong and Jamie Liu)

Customs arrest two over Alliance Medical Center closure