Date
11 December 2017
A police officer shows some of the fake documents and tools used by the suspects. Photo: NowTV
A police officer shows some of the fake documents and tools used by the suspects. Photo: NowTV

Bankruptcy scam busted after US$2.3 mln caper

Police have busted a gang of scam artists and their cohorts that defrauded 21 banks and financial companies of HK$17.8 million (US$2.3 million) in more than 230 loan applications in the past two years.

The gang solicited dozens of people with financial difficulties and convinced them to take out bank loans with the intention of declaring bankruptcy, Ming Pao Daily reported Wednesday.

The supposed clients presented fake income statements and business cards to creditors as proof they could repay their debts.

Also, the gang deposited tens of thousands of dollars into their cohorts’ accounts to complete the ruse, the report said.

The participants were asked to use their credit cards to buy gambling chips in Macau, which were then converted into cash, and cite gambling debt as their reason for bankruptcy.

The scam came to light when a woman participant confessed to police last month, leading to the arrest of 20 people aged between 21 and 53, including the alleged mastermind and several core members.

They have been charged with conspiracy to defraud and are free on bail. Police said 20 other gang members are still at large.

– Contact us at [email protected]

JH/JP/RA

EJ Insight reporter

EJI Weekly Newsletter

Please click here to unsubscribe