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Seven arrested shareholder fraud case

    The Police Commercial Crime Bureau (CCB) today (June 12) arrested five men and two women suspected of conspiring to defraud the shareholders of two listed companies in Hong Kong and 18 banks in Hong Kong and overseas for a total of $3.55 billion.

    Initial investigations revealed that in 2007, a number of senior staff of two listed companies allegedly falsified accounting records to create fictitious trading businesses and set up various investment schemes to falsify the companies' financial records to deceive the shareholders as well as 18 banks for a total loan of $1 billion. These trading receivables and investments totalling $2.55 billion were subsequently written off.

    After extensive investigations, CCB Officers raided 13 locations around Hong Kong and arrested the five men and two women, aged between 48 and 62.

    Those arrested, including a director and three ex-senior staff of two listed companies in Hong Kong, are still being detained. Investigations by CCB are under way.

Police Report No. 4

Ends/Thursday, June 12, 2008
Issued at HKT 18:26


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