According to TechFlow, the Hong Kong police successfully destroyed a local fraud group that used London gold and virtual investment business as a cover. The fraud group also used 50 fictitious companies and puppet accounts to launder HK$320 million in fraudulent funds over the past year or so.
Chief Inspector Duan Yuheng of the Serious Crime Unit of the East Kowloon Region of Hong Kong said that the fraud group used cold calls to promote investment projects such as London gold and virtual currency to victims to lure them into participating. Once the victims were deceived, the group members would claim to provide cash or transfer the money to a specific account. However, these application accounts are actually just virtual trading platforms and have nothing to do with the actual London gold and virtual currency market.
At present, the Hong Kong police have arrested 19 men and women on suspicion of money laundering and conspiracy to defraud.
