Police bust family-run fraud syndicate targeting $8.24m in government tech training subsidies

Hong Kong police dismantled a family-operated fraud group that allegedly used shell companies and fake training records to swindle nearly HK$8.24 million from the government's New Industrialisation and Technology Training Programme (NITTP) over two years.

The syndicate set up a training institute claiming to offer NITTP-approved courses, then established 11 shell companies with shared addresses, phone numbers, overlapping directors, and family ties in violation of conflict-of-interest rules.

They advertised part-time "secret course assessors" online, luring job seekers to attend sessions supposedly to evaluate instructors.

Without consent, the group registered these participants as full-time employees of the shell companies, fabricating attendance photos, records, and resumes to claim subsidies.

In mid-2024, a surprise inspection by the Vocational Training Council secretariat revealed discrepancies when three participants denied being full-time staff, prompting a report to the Innovation and Technology Commission and a police investigation.

The core members are five family members—a couple, their two sons, and one son's partner—who served as directors across the entities.

Between August 2022 and October 2024, they attempted to obtain HK$8.24 million in subsidies.

Police intervened to block HK$7.6 million in payments; HK$640,000 already disbursed remains under recovery.

From January 6 to 8, officers arrested six men and two women, including the five family members, in Kwai Tsing, Sham Shui Po, Central, and Lantau on conspiracy to defraud charges.

One suspect remains in custody; the rest are on bail.

Seized items include company documents, stamps, checkbooks, and 11 suspect computers.

The investigation continues to trace the disbursed funds, with more arrests possible.

Police condemned the systematic abuse of public funds meant to advance technology training and praised cooperation from the Innovation and Technology Commission and Vocational Training Council.

The NITTP, launched in 2018, matches 1:1 funding for high-end tech training, with a HK$250,000 annual cap per company and one course per employee.

Since inception, it has registered over 5,400 courses and supported more than 27,000 local workers. The secretariat maintains strict oversight, including random inspections.