Ten arrested over Internet investment scam
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	Ten people have been arrested for allegedly selling and promoting a fraud Internet investment scheme.

	In 2007, Police received complaints from members of the public that they suspected themselves to have been cheated of money in a pyramid investment scam in the name of "SM Fund".

	Police investigations revealed that the swindlers, who claimed to be sales representatives of a foreign investment company stationed in Hong Kong, allegedly told the victims that the capital gathered in the investment scheme in Hong Kong would be used to invest in different areas. 

They further alleged that there would be a 3% daily interest returns for the investment and it would be increased to 200% after 100 days.
	
	When the swindlers received money from the victims, they would be provided with an Internet address for opening an online account to check their points accumulated from their investment. However, when the victims wanted to withdraw money from their accounts, they were told to recruit new investors and sell their points to the newcomers in order to get their money back. They could not withdraw their money if they failed to recruit new investors.

	Following thorough investigations by Regional Crime Unit of Kowloon West, Police have arrested four men and six women aged 47 to 64 in Kowloon and the New Territories between November 2007 and June 2008. The ficticious website was subsequently identified and erased.

	Initial enquiries showed that 56 victims had been cheated involving a total amount of about $250,000.
	
	The 10 people, who were arrested for alleged deception, have been released on bail pending further enquiries.

Police Report No.5
Issued by PPRB
Ends/Tuesday, June 24, 2008
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