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Police today (May 4) arrested nine persons in connection with a false accounting and fraud case valued at HK$1.5 billion.

In June 2003, the Commercial Crime Bureau (CCB) received a report from the Securities and Futures Commission (SFC) concerning malpractice of a listed company.

Investigations revealed that between February and April 2001, the listed company allegedly conspired with other syndicated companies engaged in gold and jewelry retail outlets throughout Mainland. Purportedly, they operated suspicious bogus investment plan by means of manipulating accounting principles in their annual financial reports.

Arising from a complaint, the Securities and Futures Commission caused an enquiry. Case was then reported to the CCB for investigation.

After investigations, CCB officers today arrested seven men and two women, aged between 33 and 76, at various locations in the territory, including the office of the listed company located in Western District. The arrested persons included the chairman and some directors of the company.

The arrested persons were detained for enquiry.

Police reminded professionals to uphold corporate governance and to report any suspicious transactions.

Police Report No. 11

Ends/Wednesday, May 4, 2005

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