A man and a woman have been arrested for allegedly defrauding 30 people out of HK$48.8 million by persuading them to purchase original issue stocks of companies that the duo claimed they were planning for an initial public offering (IPO), Judiciary Police (PJ) spokesman Chan Wun Man said during a special conference yesterday.
The 48-year-old male suspect surnamed Cheung is a Hong Kong resident who told the police he’s a businessman. The 58-year-old local female surnamed Ho suspect told the police that she’s a housewife. The 30 victims, ranging in age from 27 to 68, are all local residents comprising 16 men and 14 women. They suffered losses ranging from HK$40,000 to HK$29 million.
According to Chan, the police had received separate reports from residents since January 2022 saying that they had been swindled by an investment company in Nape. They told the police that they were persuaded by the company’s shareholder, Cheung, to subscribe to companies’ original “high potential” shares which were purportedly planned to be listed in Hong Kong.
Cheung promised them in online meeting sessions that investors could earn a profit of two to three times the principal if the company was successfully listed. He also claimed that even if the company failed to go public, their principal would be returned. Cheung said that each investor was promised a 100 percent return on their investment every six months.
After the victims “invested” in the company, only a small fraction of them received returns ranging from HK$1,000 to HK$20,000. The fraudsters also constantly persuaded the victims to subscribe to other companies’ original shares. Chan noted that the suspects had set up multiple offshore companies overseas whose names were similar to several well-known Hong Kong enterprises to attract the victims to “invest”.
The Macau Monetary Authority (AMCM) announced in late 2021 that the investment company was not licenced to engage in stock-trading activities. The company was shut down in December 2021, leading the victims to report the case to the police.
Cheung was arrested on May 17 when he attempted to leave Macau through the Hong Kong-Zhuhai-Macau Bridge (HZMB) checkpoint. Ho was arrested on Sunday at the local airport.
Under questioning, Cheung and Ho denied the accusation, insisting that they were only receiving orders from another shareholder in Hong Kong. They also claimed that all the ill-gotten money had been transferred to that shareholder.
Chan did not disclose any further information on “that shareholder”.
Cheung and Ho were transferred to the Public Prosecutions Office (MP) yesterday, facing fraud charges, Chan said, adding that the local police are cooperating with their Hong Kong counterparts in the search for other suspects in the case.
The hooded fraud suspects are escorted by Judiciary Police (PJ) officers from the PJ headquarters in Zape to a vehicle yesterday. – Photo: William Chan
