Police smash loan sharking syndicate
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Police believed to have neutralised a loan sharking syndicate after the arrest of seven people in an operation codenamed "Matchholder".

Following extensive investigation into the syndicate that began last year, officers of Regional Crime Unit of New Territories North (RCU NTN) mounted the operation across the territory on Tuesday (July 28) and arrested four men and three women aged between 23 and 48. A large number of documents, debtors' information, bank cards and computers were seized during the operation.

Initial enquiries revealed that the syndicate had allegedly advertised in magazines and discussion forums on the Internet, claiming that they could offer loans at low interest rates with no income proof required.

A 28-year-old woman borrowed $8,000 from the syndicate in 2007 but she allegedly had to repay $1,200 as interest payment every 10 days. Last year, the victim had repaid more than $40,000 but the syndicate claimed she still owed $70,000. The victim subsequently made a report to police.

Officers of RCU NTN found that the syndicate had allegedly lent at an interest rate exceeding 540% per annum. There were more than 150 victims and the total amount of loans offered in the past few years exceeded $8 million. Police believed that income of more than $600,000 was generated from interest payments each month.

Investigation also showed that the syndicate members were suspected of forcing some of the debtors to hand over their personal bank accounts for other debtors to repay debts as well as for money laundering.

The seven people were arrested for lending money at excess interest rate and dealing with property known to represent proceeds of indictable offence and they are being detained for further enquiries.

Police remind the public not to believe advertising claims by moneylenders and not to borrow money from loan sharking syndicates. They must not provide their personal bank accounts to others for unlawful purposes. To do so is a money laundering offence.

Police Report No. 4
Issued by PPRB

Ends/Thursday, July 30, 2009
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