The owner of playgroup operator Bambini Republic, which suddenly closed all of its five outlets in Hong Kong in late November, was arrested by customs officers on Monday, Sing Tao Daily reported.
Tom Miu, 45, was taken to the Tsuen Wan police station last Saturday after being accused of deceiving parents into investing in a fraudulent business, but was released even after he refused to post bail on Monday.
However, customs officers arrested Miu after he walked out of the police station on suspected unfair trade practices based the Trade Descriptions Ordinance.
He was accused of taking fees for services he knew he could not provide.
Miu was taken to the customs headquarters in North Point for interrogation and was expected to stay there overnight.
At least 45 parents told police they had paid Bambini a combined HK$1.9 million (US$245,127) as tuition and investment.
A spokesman of the Education Bureau said Bambini was not registered as required under the Education Ordinance.
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