2004-01-08 23:50 Police had smashed a mortgage fraud syndicate that fraudulently obtained more than $7 million mortgage loans from local financial institutions. An investigation launched by the Commercial Crime Bureau (CCB) revealed that the syndicate fraudulently obtained mortgage loans from banks, Hong Kong Housing Authority and Hong Kong Housing Society between February 2001 and November 2003 by using false instruments such as employment reference, income proof and bank documents. The syndicate was believed to be involved in a total of 18 suspicious mortgage loan transactions amounting to a sum of HK$7.86 million. Four of such transactions, involving $1.66 million, were successfully suspended owing to the concerted efforts by CCB and the banks involved. Eight men and three women aged between 29 and 55, suspected to be involved in 15 suspicious mortgage loan applications for a total of HK$6.24 million, were arrested in various locations today. During the operation, some documents and computer equipment were also seized. Among the 11 arrested persons, three men and a woman will be detained overnight for enquiries while the rest have been released on bail between $5,000 and $20,000 pending further investigation. Investigations by the Commercial Crime Bureau are continuing. |