Police pounce on 35 in gold scam

Police have arrested 35 people and smashed several Loco London Gold fraud rackets that had defrauded at least 40 victims of more than HK$57 million.

An undercover operation was mounted early last year targeting Loco London Gold scams in which an undercover officer was sent to work in trading companies to gather intelligence and to investigate, said Superintendent Hung Ngan of the Commercial Crime Bureau.

On Monday more than 200 police raided 53 premises across the city, including two offices in Kwun Tong and Wan Chai, arresting 29 men and six women aged between 17 and 68.

Those arrested included two masterminds, directors and executives of the companies, as well as investment brokers.

Hung said police did not rule out the possibility that more arrests will be made.

The 35 people were arrested for offenses including conspiracy to defraud, money laundering, claiming to be a member of a triad society, and trafficking dangerous drugs.

Officers seized computers, transaction records, record books, account documents and contracts of shady deals.

Police also seized HK$200,000 cash, 25 luxury bags worth more than HK$1 million, and six watches worth more than HK$500,000 at the homes of the leaders.

Police have also frozen 22 bank accounts which contained a balance of HK$10 million. They are also considering confiscating two premises worth more than HK$20 million.

Hung said the trading companies approached the victims through social media or cold calls, and lured them to invest in Loco London Gold trading.

"From our investigation, it was found out that many victims were lured into signing authorization letters which enabled the agents to conduct frequent trade so as to earn commission until the victim's money was exhausted," Hung said.

Chief Inspector Tang Kwok-hin of the bureau said the victims included 27 men and 13 women, aged between 20 and 71.