Police arrest 35 over HK$10.3m technology voucher fraud

Police arrested 35 people for defrauding the government of HK$10.3 million in 50 applications of the technology voucher subsidy. 

The arrestees included 21 men and 14 women aged 24 to 62. They were arrested on suspicion of conspiracy to defraud, attempted fraud and fraud. 

It is understood that former pro-democracy Yuen Long district councilor Lam Chun is among the arrestees. 

The police investigation stemmed from suspicious cases that have been referred by the Innovation and Technology Commission since last July. 

Police found that the three syndicates involved recruited merchants to apply for the voucher and provided one-stop services for them, preparing all necessary documents and submitting false operation proof and payment records. 

The syndicates also opened email accounts to contact the secretariat of the commission to inquire their applications. After successfully cheating the allowance, the syndicates would then split the subsidy with the intermediary companies at the ratio of 7:3 or 6:4. 

Police believe the syndicates approached the small-and medium-sized enterprises to apply for the voucher through social media and cold calls. They would also lure friends and families to open companies as technological service providers for false tendering. 

On Tuesday and Wednesday, officers from the Commercial Crime Bureau and the Kowloon West regional crime squad raided 64 involved companies, the arrestees’ homes and their offices, and seized sizable operation records, bank documents, and about HK$360,000 in cash. 

About HK$950,000 in assets were also frozen during the operation. 

Police said they have smashed multiple syndicates for good in this operation and condemned the fraudsters, adding that the investigation is ongoing.