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Police arrested two persons during an operation against pyramid scheme related fraud.
After a number of suspected pyramid scheme related fraud cases were disclosed earlier this year, officers of the Commercial Crime Bureau continued to closely monitor the activities of a number of companies suspected to have been offering similar schemes.
Protracted investigations revealed that two companies at Kimberley Plaza at 45-47 Kimberly Road in Tsim Sha Tsui and Boss Commercial Centre at 28 Ferry Street in Yau Ma Tei were providing two kind of investment schemes which were suspected to be related to pyramid selling.
Under the first scheme, participants are requested to pay a certain amount each month to qualify for a bonus payment.
If participants can recruit three more persons to be members, they will receive extra bonus payments.
According to the second investment scheme, participants are required to buy at least one lot of products from the company, after which they will receive a product coupon worth 10 per cent and training course coupon worth 90 per cent of the money they paid.
When the participants' investment reached a particular amount, they will be eligible for a profitable return.
Police believed that the two schemes involved pyramid scheme related fraud. The total amount of cash flow can reach some $100 million.
Officers then mounted raids against the two companies yesterday and seized a large number of related documents and computers.
A 35 year-old-man, who was the shareholder and director of both companies, was arrested at the office in Tsim Sha Tsui.
Another shareholder and director, a 41-year-old woman, was arrested this (May 4) afternoon at the airport when she came back to Hong Kong.
Police have also applied Restraint Orders under the Organised and Serious Crime Ordinance to freeze $16 million of the companies and two flats which amount to $3 million.
Police investigations showed that more than 15,000 people have already joined the schemes and are now calling on them to contact officers of the Commercial Crime Bureau on 2860 5012.
The duo, arrested for fraud, still being detained for further enquiries.
Police Report No. 9
Issued by PPRB
End/2330 hours, Friday, May 4, 2001 (IA/CA)
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