VLC SCMP Corner

Six jailed over $300,000 investment scam

Friday, October 6, 2000

CHRIS WONG

deterrent	gullible	conspiracy	fraudulent	bogus	scam
concern	confidence	fleeced	hazards	persuaded	luring

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Six people who " " investors of a total of $300,000 were jailed for up to four years yesterday. Ho Chi-keung, 28, Loo Tak-kwan, 23, Allen Kwok Wai-len, 22, Siu Kwok-ping, 31, Leung Lun-hiu, 23, and Lau Chung-yee, 24, were found guilty of middle-aged job-seekers into an investment . They were given sentences ranging from three years and nine months to four years on charges of to defraud. They pleaded not guilty.

District Court Judge Fergal Sweeney said the fraud was "well-planned, sophisticated and cynical". The seriousness of the crime had called for sentences, he said.

The six female victims, aged 34 to 61, were hired in July last year by a shell company, Profit Style Development Ltd, to work as cleaners and office assistants, the court heard. Soon after starting work at the company, which they were told traded in jewellery and food snacks, the women were to place money in a form of investment known as "Loco-London Gold/Silver".

They handed over amounts ranging from $30,000 to $90,000, but no investments were made, the court heard. "The young staff members would gain their trust and and most importantly find out if they had any money available in their accounts," Judge Sweeney said.

"The defendants would take whatever they could get and victims paid them as much money as they had. The operators thought it would be beyond the law. I say that because it continued to operate even when they knew some victims had gone to police."

The scale of the operation was "clearly designed to attract the sort of people who become trapped within a short period of time", the judge said.

After complaints from the workers, police raided the office of Profit Style Development but found no trading records. Two experts in bullion trading testified that the Profit Style operation was not equipped to trade in bullion.

Senior Inspector Yau Kin-hung said police were now obliged to demonstrate in court that companies subject to criminal investigations were operations. Ho, who was a director of Profit Style Development, was also convicted with a seventh person, Liu Pui-shan, 24, of failing to keep accounts. Both were given suspended sentences.

Judge Sweeney yesterday expressed over a number of similar cases in recent years aimed at "poorly educated, middle-aged ladies". The judge said publicity surrounding such court cases had helped to raise awareness of schemes and potential investors were now more aware of the .