Key Takeaways
- • Hong Kong police arrested six people allegedly linked to a nine-year fraud run by a suspected cross-border syndicate that offered purported business opportunities in agarwood and cryptocurrency, with funds involved reaching HK$14 million (US$1.78 million).
- • Investigations began in September after police received 21 victim reports, mostly elderly investors, who said they had invested in products offered by BBB Group (Hong Kong) as early as 2017.
- • Victims were aged 52 to 82, with individual investments ranging from HK$30,000 to HK$1.9 million.
- • Police say the firm used various excuses to delay investor cash withdrawals in an apparent effort to avoid repaying investors.
Summary
Hong Kong police have arrested six people allegedly tied to a nine-year scam run by a suspected cross-border criminal syndicate, according to the South China Morning Post. The syndicate offered business opportunities in agarwood, a resinous wood prized in the fragrance and traditional medicine trades, and cryptocurrency. Funds involved in the scheme reached HK$14 million (US$1.78 million).
Superintendent Allan Chu Ming-lun of the commercial crime bureau said on Thursday that the investigation began in September after the force received 21 reports from victims. Most of the victims were elderly people who said they had been investing in various products offered by BBB Group (Hong Kong) since as early as 2017. Chu said the firm used various excuses to delay investors' cash withdrawals, "in a bid to evade their responsibility of paying them back."
The victims were aged between 52 and 82. Individual investment amounts ranged from HK$30,000 to HK$1.9 million, and the total across the 21 complainants reached HK$14 million. RTHK, which reported that police smashed a cross-border syndicate accused of running an elaborate investment fraud centred on agarwood trees, provided similar accounts of the arrests.
The case highlights the risks of alternative and crypto-linked investment offerings marketed to retail and elderly investors, particularly where withdrawal delays are used to defer redemptions. Police have not publicly detailed the charges or the status of the BBB Group's assets in the reports reviewed.
Superintendent Allan Chu Ming-lun of the commercial crime bureau said on Thursday that the investigation began in September after the force received 21 reports from victims. Most of the victims were elderly people who said they had been investing in various products offered by BBB Group (Hong Kong) since as early as 2017. Chu said the firm used various excuses to delay investors' cash withdrawals, "in a bid to evade their responsibility of paying them back."
The victims were aged between 52 and 82. Individual investment amounts ranged from HK$30,000 to HK$1.9 million, and the total across the 21 complainants reached HK$14 million. RTHK, which reported that police smashed a cross-border syndicate accused of running an elaborate investment fraud centred on agarwood trees, provided similar accounts of the arrests.
The case highlights the risks of alternative and crypto-linked investment offerings marketed to retail and elderly investors, particularly where withdrawal delays are used to defer redemptions. Police have not publicly detailed the charges or the status of the BBB Group's assets in the reports reviewed.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.