Ten arrested in $4m money laundering case using gift cards

Some 10 individuals were arrested, including the youngest at just 16, after they were recruited by a mainland crime syndicate to purchase and reload large amounts of gift cards at convenience stores across the city, facilitating the laundering of an estimated HK$4 million.

Investigation revealed that that the group comprised not only teenagers but also parents who allegedly aided their children in collecting payments, as well as the owner and staff of a second-hand phone shop who acted as middlemen.

Police received reports in early August that a 17-year-old local youngster was found acting suspiciously and purchasing a large number of gift cards at various convenience stores in Tuen Mun.

After the investigation, officers seized 25 phones registered with e-wallets with bank cards that did not belong to him, as well as 46 newly purchased Apple App Store gift cards, leading to his arrest.

Sources indicate that the 17-year-old is a student who took the Hong Kong Diploma of Secondary Education Examination last year.

Officers further found that the arrestee had recruited five other youths aged between 16 and 25 to purchase over 1,000 App Store and Globalcash gift cards at various convenience stores between May and August of this year, laundering an estimated of HK$4 million.

The teenagers involved sent the gift card redemption codes to mainland criminal gangs via phone messages, and also handed over some physical gift cards to a designated second-hand phone shop, which is believed to be operated by part of the mainland criminal gangs.

The operation led to 10 arrests, including nine males and a female aged between 16 and 61. They will be facing conspiracy to commit money laundering charges. Officers also seized a total of 54 phones and 108 gift cards.