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Police today (August 5) arrested 11 men suspected to have made fraudulent claims to the Labour Department for ex-gratia payment from the Protection of Wages on Insolvency Fund.

Following a referral from the Labour Department in July this year, the Police Commercial Crime Bureau (CCB) mounted an operation today and arrested 11 men aged between 29 and 63.

Initial enquiries revealed that after the close down and self winding-up of a limited company running a piling works in Ma On Shan, the director, a 61-year-old man, was believed to have conspired with ex-employees and some other persons to make fraudulent claims to the Labour Department by providing false information.

Further investigation showed that some fictitious employment was also arranged in the application of the fund.

The claims amounted to a total of some $1.14 million.

In the operation, CCB officers raided 13 locations throughout the territory and arrested the 11 men for conspiracy to defraud. They are being detained. Enquiries still continue.

A Police spokesman said that a special task force comprising representatives of the Labour Department, Official Receiver's Office, CCB and Legal Aid Department had been set up to prevent the possible abuse of the fund.

He added that any possible frauds, misfeasance and theft by either employers or employees would be referred to Police for investigation.

The spokesman stressed that submitting false information with intent to obtain ex-gratia payment from the Protection of Wages on Insolvency Fund was a serious offence.

Offenders may not only be liable under the Protection of Wages on Insolvency Ordinance, but also be liable to other criminal offences including fraud or deception with a maximum penalty of 14 years' imprisonment upon conviction.

Police Report No 1

Issued by PPRB

End/ 1140 hours, Tuesday, August 5, 2003