More ex-district councilors held in MPF fraud case

Police arrested four more people, including former Sham Shui Po District Council chairman Yeung Yuk and former Sha Tin district councilor Sunny Chiu Chu-pong, in connection with fellow ex-councilor Derek Chu Kong-wai's alleged fraud case for promoting Mandatory Provident Fund products without a valid license.

Former pro-democracy Yau Tsim Mong district councilor Chu, 46, was arrested Tuesday on suspicion of promoting MPF schemes without registration. He was granted bail yesterday and is required to report to the police in early November.

After further investigation, police said they suspect Chu and four other men were involved in an alleged fraud.

The four men arrested in Cheung Sha Wan Wednesday and yesterday were accused of in involvement in a conspiracy to defraud and fraud charges.

Sources say they included two more former pro-democracy district councilors - Chiu, 31, and Yeung, 38. The other two suspects are brothers surnamed Lee, aged 33 and 36. It is understood the brothers introduced the three former district councilors to join the insurance team.

Yeung is a member of the Hong Kong Association for Democracy and People's Livelihood, while Chiu is a member of the disbanded Neo Democrats.

Earlier, police received complaints of someone promoting MPF schemes on social media and other activities without a valid MPF intermediary license.

Following the investigation, Chu was arrested Tuesday in Sha Tin for violating the MPF Schemes Ordinance by promoting MPF schemes without registration. Further investigation revealed that Chu was also involved in another case of alleged fraud.

Police executed search warrants at the residences and offices of the four men, seizing relevant documents and electronic communication devices.

They were still being held in custody, and investigations are ongoing, with the possibility of more arrests.

Chiu's girlfriend wrote on his Facebook page yesterday, confirming that he was under investigation at the police station. "He [Chiu] has legal representation, is well-fed, and has good mental health," she said. "We kindly ask everyone to give us space."

After resigning as district councilors, Yeung and Chiu continued to focus on community work and formed a community financial management team. In an interviewed, they said their team's focus was on MPF services and their plan to set up street stations to assist residents with financial matters.

toby.ng@singtaonewscorp.com