Burst
Written by: Shao Peilin and Huang Weimin
2021-04-27 10:16
Last update date: 2021-04-27 14:58
The police detected about 236 million yuan in a London gold scam, and more than 116 mainlanders were victimized.
After investigation by the Police Commercial Crime Bureau, it was discovered that the scammers used the local London Gold Company and then through the mainland intermediary company to induce the victim to invest with "high return and low risk", and sign a consent form to authorize the mainland intermediary to control the account.
The scammers made unreasonable London gold trading, causing the victims to lose all their investment capital. The victims suffered a total loss of more than 200 million Hong Kong dollars, and the single largest loss was as high as 13 million.
As of yesterday (26th), the police arrested 5 men and 2 women, freezing the assets of the fraudsters totaling 77 million yuan. During the operation, computers, bank records and 830,000 cash were seized. The police did not rule out that more people were arrested.
The Superintendent of the Commercial Crime Investigation Bureau, Ye Yonglin, pointed out that after an in-depth investigation, the police arrested 5 men and 2 women yesterday (26), aged between 35 and 76.
The arrested persons are all locals, including a French national who can speak Chinese. They are the person in charge of the company, the director and the account holder. The arrested person was charged with “conspiracy to defraud” or “money laundering”. The police did not Rule out more arrests.
Afterwards, the police searched the investment company's offices in Central and Cheung Sha Wan, as well as the arrested person's residence. During the operation, they seized a batch of computers, mobile phones, bank records, company documents and 830,000 cash.
During the entire operation, the police froze a total of 77 million yuan in assets of the fraudsters. The police will continue to conduct wealth investigations on the arrested.
116 suffering victims are all mainlanders with a single largest loss of 13 million yuan
According to Lu Zhenzhong, Chief Inspector of the Commercial Crime Investigation Division, two lawyers represented 116 victims in this case. The 116 victims lost a total of approximately HK$236 million. Most of them participated for more than 2 years, and the single largest loss amount was as high as The victims were all mainlanders of $13 million, and their participation in the investment plan lasted from about one to five years.
According to the police, the scammers carried out the relevant plan from 2013 to 2018. The scammers used the local London gold company and then through the mainland intermediary company to induce the victim to sign a consent form, authorize the mainland intermediary to control the account, and make unreasonable London gold Trading, resulting in the victim losing all the principal of the investment.
As for the company involved in the case is a local financial group and a mainland asset management company.
The local scam group used a mainland asset management company as an agent to hold several investment seminars in the mainland. The scammers claimed that the investment was "high return, low risk" and the annual return was 13 to 27%, attracting mainlanders to invest in London Gold. Encourage the victim to deliver the online investment account name and password to the company's intermediary, and transfer the investment funds to the intermediary to deposit into the investment account.
Afterwards, the victims were notified that their investment had failed and all the money in the investment account had been lost.
It is found that mainland intermediaries make false statements about the victims’ investment transactions are now unusual
After investigation by the police, it was discovered that intermediaries in the Mainland would make false statements, including alleging that the relevant investment was low-risk, high-return and capital-guaranteed.
As for the victim's investment transactions, there are also three unusual places, including high leverage, high frequency transactions, and a large number of transactions that do not conform to the investment logic.
The police allege that "highly leveraged trading" caused the victim to lose a lot of money if there was a slight change in the price of gold.
As for "high frequency", when the price of gold does not rise or fall significantly, a large number of meaningless buying and selling transactions are carried out for the victims, causing the victims to bear large transaction costs.
Finally, "trading that does not conform to the investment logic" means buying when the market is high and selling when the market is low, causing the victim to lose investment money in a short period of time.
Warn investors to pay attention to the company's background and investment risks when investing in London Gold
Senior Inspector of the Commercial Crime Investigation Bureau, Liang Qiaoming, said that when investors are urged to invest in London gold and precious metals, they need to pay attention to the background of the investment company and investment risks.
Secondly, when signing investment documents, you need to understand the details of the documents. Do not sign the authorization letter easily, let alone disclose the online transaction user name and password to a third party.
Finally, you should check the account statement and transaction records, and if you have any doubts, you should check with the relevant company as soon as possible.
Ye Yonglin pointed out that the police reiterated that the police will not tolerate fraudulent activities using Loco London gold trading. There is no specific law governing Loco London gold trading over the counter, which makes it easy for criminals to take advantage of it.
The public should take risks and consult professional opinions before investing in the market.
If you have any questions, you can call the police "Anti-Fraud Coordination Center" 24-hour anti-fraud hotline 18222.
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