Man jailed for conspiracy to defraud

A 30-year-old man was sentenced to imprisonment of four years and six months at District Court today (August 20) after being convicted of conspiracy to defraud.

The court heard that the defendant together with 18 arrested persons set up three trading companies in Kowloon area and placed advertisements on newspapers to recruit female junior staff between March 2003 and March 2004.

The defendants claimed that their companies had rejected some business deals owing to small quantities or low profit margin and lured the newly recruited staff to form a partnership to take up the deals.

When the victims agreed, the defendants accompanied them to visit some suppliers in Shenzhen where the victims signed the purchase contracts and paid the down payments.

After the victims fallen into the trap, the defendants told the victims that the transactions were called off for different reasons. Victims were finally sacked and suffered pecuniary loss.

Some victims reported the case to Police in March 2004.

Twenty-one victims were involved in the case, with a total of $8.92 million were deceived.

Following extensive investigations, Police arrested nine men and ten women between March 2004 and January 2007. They were later charged with conspiracy to defraud.

Seventeen defendants were convicted and received sentences ranging from two years and six months to four years and six months and a 38-year-old male defendant was earlier acquitted of the charge. The last defendant, the 30-year-old man was convicted on August 6 and the sentence was handed down today. A criminal bankruptcy order was also awarded.

The police take the opportunity to remind the members of the public the pitfall of employment frauds.


Police Report No. 8
Issued by PPRB

Ends/ Monday, August 20, 2007