Police have dismantled a fraudulent London gold investment syndicate operating from a 1,500-square-foot office in Kwun Tong, arresting nine people who targeted victims who had previously lost money in London gold investments, authorities said on Tuesday.
The syndicate, which had been operating for more than a year, contacted victims by phone, falsely claiming they still had idle London gold holdings from previous investments and that rising gold prices had generated substantial profits. Victims were initially asked to pay limited funds and sign third-party authorisation to retrieve profits. After payments were made, the syndicate used various excuses – including storage fees, margin calls and tax payments – to demand more money.
The investigation began in May after a complaint was filed. Police have contacted multiple victims, with losses ranging from HK$100,000 to several million. The largest single loss was HK$3.7 million, suffered by an 80-year-old retired woman. Officers prevented another victim from handing over HK$2.9 million in cash and stopped another from taking out further loans.
Undercover officers posing as victims raided the fake investment company and suspects' residences on Tuesday, arresting eight men and one woman aged 23 to 43. Seized items included investment agreements, receipts, phone lists with over 1,000 numbers, and fraud "scripts."
Police said some syndicate members had laundered up to HK$10 million in criminal proceeds since 2025. Senior Inspector Chan Wing-yin warned that London gold trading is unregulated in Hong Kong, with companies and brokers not required to hold licences or professional qualifications.
