HONG KONG — Police arrested a school principal and an employee in Hong Kong this week on conspiracy to defraud charges following the abrupt closure of a private school, Kowloon Tong Eunoia College, that allegedly collected over HK$1.8 million (approximately US$236,000) in unauthorized fees from parents. The arrests on Thursday, November 13, cap a widening scandal spurred by allegations of financial mismanagement, illicit fundraising, and the school’s suspected use as a front for a mainland Chinese education provider.
Detectives from the West Kowloon Regional Crime Unit apprehended the 36-year-old principal, identified by the surname Kei, and a 44-year-old female staff member, surnamed Chiu, in connection with the fraudulent collection of “school construction fees” and other payments. The arrests came after multiple parents filed reports claiming financial losses after the school ceased operations, failing to refund substantial upfront deposits promised upon student withdrawal or graduation.
The Fallout of Fraud Allegations
The investigation centers on allegations that Eunoia College, operating in Kowloon Tong, solicited fees upwards of HK$380,000 (US$48,500) from some parents, often referred to as “holding fees” or “administrative charges,” with the understanding that these funds would be fully refundable. However, following the school’s closure, parents reported receiving only partial refunds, such as a mere HK$95,000 in one reported instance, or no communication regarding the promised reimbursements. The total reported loss across all complainants approaches HK$1,845,000.
The case gained public attention earlier this month after the Education Bureau (EDB) announced its refusal to register the school, citing unsatisfactory management and precarious financial health. The EDB’s decision followed reports suggesting that Eunoia College was involved in a controversial arrangement, allegedly acting as a shell entity for a Shenzhen-based education provider, known as Hanhai International Education. This arrangement reportedly allowed students from the mainland to utilize Eunoia’s name to pursue international qualifications, such as the UK’s A-Level curriculum, potentially facilitating easier entry into Hong Kong universities. The EDB has since emphasized its commitment to rigorously addressing cases of “shell operation” offering local student status.
Dual Enrollment and MPF Violations Surface
Further scrutiny of the school revealed a separate controversy involving a student who won a gold medal at the International Physics Olympiad. The school’s affiliation with this student was temporarily suspended by the Hong Kong Academy for Gifted Education (HKAGE) after allegations surfaced that the individual held dual enrollment status in both Hong Kong and Shenzhen—a direct violation of competition rules and local education codes. The HKAGE has frozen the student’s participation and training eligibility pending investigation.
Adding to the school’s woes, the Mandatory Provident Fund Schemes Authority (MPFA) is pursuing legal action against the operating body of the school, Enlighten Education, for failing to make mandatory pension contributions for eight employees between March and July of this year. The outstanding amount is reportedly around HK$130,000.
The two suspects are currently being held for questioning as the West Kowloon Regional Crime Unit continues its investigation into the extent of the alleged conspiracy. The EDB is simultaneously increasing its monitoring of private schools, establishing surprise inspection teams to scrutinize attendance records and student enrollment data at high-risk institutions to prevent similar educational irregularities and financial misconduct. Parents affected by the closure of Eunoia College have been advised to cooperate fully with police inquiries.
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