Six held over HK$14m agarwood investment scam

Police in Hong Kong have dismantled a cross-border syndicate involved in an investment fraud scheme centered around agarwood trees, arresting six individuals and seizing over HK$14 million linked to the operation. The suspects, ranging in age from 52 to 66, included the mastermind and several core members of the group. Police executed raids on the company's office and warehouse in Kwun Tong, as well as the residences of the arrested individuals.

Since September, authorities have received reports from 21 victims, primarily elderly individuals, who lost anywhere between HK$30,000 and HK$1.9 million due to investment schemes promoted by the local company between 2017 and the present. The company ran at least four distinct investment plans over the years, with the earliest involving the purchase of agarwood trees for HK$10,000 each, promising a monthly return of HK$300 (an annualized yield of 36 percent) and a full principal refund after three years.

By 2024, investors found themselves unable to redeem their principal or collect interest, as the company provided various excuses. Subsequently, the operation introduced new schemes such as a 25-percent interest intellectual property licensing plan, a proprietary cryptocurrency, and a 30-percent annual return automated car wash station investment, all aimed at evading repayment obligations.

Brief written by urgent.news from RTHK News's own syndicated text. Machine-written — may contain errors; check the original before relying on it.