Police detained 14 people from money laundering syndicate for laundering 380 million yuan of mastermind and 7 arrested persons as family members or couples

The police smashed a money laundering syndicate, suspected of using 60 bank accounts to process more than 380 million yuan of proceeds from crimes in the past year and a half, of which 25 million were defrauded in 50 local and foreign fraud cases.

The police raided the operation center and various locations of the money laundering syndicate in Fo Tan yesterday and today (22 and 23) and arrested 14 people on suspicion of conspiracy to commit money laundering. Among them were the mastermind and key members, the mastermind and 7 of them were arrested. The arrested persons belong to family members or couples.

During the operation, the police seized more than 370,000 cash, believing that the relevant bank accounts and securities companies were frozen for more than 20 million yuan.

The Chief Inspector of the Wealth Investigation Section of the Police Wealth Intelligence and Investigation Division, Deng Kaitong, stated that the money laundering syndicate has been operating for about one and a half years. Benefit from local or foreign fraud, and facilitate user account transfer to launder money.

The group uses one of its key members in Fo Tan's company as an operation center to operate a puppet account.

The group controls 60 puppet accounts in total to launder more than 380 million yuan of criminal proceeds. After the criminal proceeds are washed, they will be withdrawn by key members at the teller machine or transferred to securities company accounts or other bank accounts in a short time.

Among them, $25 million is believed to be fraudulent funds from 50 fraud cases, including 8 local and 42 foreign cases involving phone calls, emails, online romance and investment fraud.

Money laundering groups invite others to open puppet accounts, collect the proceeds from local or foreign fraud cases, and facilitate the transfer of money laundering from the user account.

(Photo by Weng Yuhui)

The police launched an intelligence-led arrest operation code-named "Operation Fei Su" yesterday and today. They searched Fo Tan Industrial Centre units and various places and arrested 9 males and 5 females locals for conspiracy to launder money, including 3 key members. One of them is the mastermind, and the mastermind and the 7 persons to be supplemented are family members or couples.

The police said that the family members were not found to be paid for the time being, but they did not rule out that they were paid, and investigations are still needed.

During the operation, the police seized more than 370,000 cash, 50 bank cards, telephones, computers and a large number of bank documents, and frozen relevant bank accounts and securities companies for more than 20 million yuan.

Deng Kaitong pointed out that the highest amount of fraud obtained from the current investigation was an investment fraud. The victim was a 30-year-old female clerk. In February of this year, she met a man living in the United States who claimed that he could provide high-return and low-risk investment activities. After the person handed over 550,000 yuan, the other party lost contact.

In addition to the 50 fraud cases mentioned above, other sources of criminal proceeds are still to be investigated. Initially, they may involve unreported victims or other cases. The purpose and destination of criminal proceeds after they are deposited in securities companies are also subject to investigation.

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