Fifteen arrested as police smash loan shark syndicate over criminal cases in Sham Shui Po

Police have smashed a loan shark syndicate and arrested fifteen people in relation to at least 16 criminal cases in Sham Shui Po worth HK$3 million. 

The arrestees, including 13 men and two women aged 21 to 58, were the directors, shareholders and staffers of the loan shark company. 

They were arrested between Monday and Thursday on suspicion of lending money at excessive interest rates, lending money without a license, criminal damage, criminal intimidation, and money laundering. 

Police earlier investigated the company in Mong Kok and found the syndicate attracted citizens to apply for instant loans through online or telephone promotions. The syndicate then charged victims 10 to 25 percent of fees using different excuses. 

One of the complainants lent HK$28,000 from the syndicate but was charged HK$5,600 for the service fee, equivalent to two-fifths of the loan. 

That complainant was even requested by the syndicate to repay over HK$7,300 every 15 days, with the total paid amount nearing HK$30,000 in just two months, including interest. The annual interest rate reached 298 percent, five times higher than the statutory cap of 48 percent. 

The syndicate also allegedly hired thugs to splash paint at applicants’ homes, post flyers, and threaten applicants or their families on phone and social media platforms. 

During the operation, police seized 300 loan application records and over HK$300,000 of assets, including HK$160,000 in cash. The investigation also revealed that the syndicate’s bank account handed over HK$15 million in transactions over the past year.