Hong Kong Private School Principal Arrested in $1.8 Million Fraud Investigation

Police in Hong Kong have arrested a school principal and a staff member of a deregistered private school, OnePromise College (Kowloon Tong), following allegations that the institution defrauded multiple parents out of more than HK$1.8 million in “school construction fees.” The arrests on Monday, November 13, stem from an investigation into systemic misconduct at the school, including unapproved financial practices and a major controversy over alleged “shell school” operations with a mainland Chinese education provider.

Detectives from the West Kowloon Regional Crime Unit apprehended a 36-year-old male principal, identified by the surname Kei, and a 44-year-old female staff member, surnamed Chiu, on suspicion of conspiracy to defraud. Both individuals are currently detained for questioning, as authorities continue to investigate the financial collapse of the institution, which was refused registration by the Education Bureau (EDB) earlier this year.

Allegations of Deceptive Enrollment Fees

The investigation was launched after multiple parents filed reports claiming OnePromise College had solicited substantial fees under false pretenses. According to police reports, the school collected “school construction fees” and other charges, promising full refunds if students transferred or graduated. The total reported loss for complainants stands at approximately HK$1.845 million.

One victim detailed paying HK$380,000 in December 2024 for a “seat retention fee,” administrative fees, and miscellaneous charges, with the understanding that these funds would be fully refundable. However, following the school’s sudden notification in June about a change in ownership and its subsequent cessation of operations under EDB order in July, the parent only received HK$95,000 back, sparking suspicion of fraud.

The parents allege they were misled into paying substantial development fees without the necessary regulatory approval from the EDB. Further complicating the matter, investigators are also looking into the female suspect’s alleged involvement in operating a separate unregistered school in Hung Hom.

Regulatory Crackdown and “Shell School” Concerns

The arrest follows months of scrutiny directed at OnePromise College. The EDB officially refused the school’s registration, citing dissatisfaction with its management and financial stability. This decision came shortly after the school became embroiled in a scandal involving an alleged partnership with a Shenzhen-based education institution, Hanhai International Education, aimed at allowing mainland students to enroll late and use Hong Kong status for university applications—a practice known as “shell school” operation.

The EDB has emphasized its commitment to seriously addressing any instances of establishing schools to improperly provide Hong Kong student status. Furthermore, the controversy was fueled by a separate revelation concerning one of OnePromise’s students, who won a gold medal at the International Physics Olympiad but was suspected of holding “dual Hong Kong-Shenzhen student status.” The Hong Kong Academy for Gifted Education subsequently froze the student’s training and participation eligibility pending an inquiry.

Defaulted Employee Payments Add to Financial Turmoil

The school’s financial mismanagement extends beyond parent fees. The Mandatory Provident Fund Schemes Authority (MPFA) previously disclosed that K&D Education, the operator of the school, failed to make approximately HK$130,000 in MPF contributions and surcharges from March to July for eight employees. The MPFA has initiated legal proceedings to recover the outstanding funds on behalf of the affected workers.

The series of scandals underscores heightened regulatory vigilance over private schools, particularly those with ties to cross-border educational schemes. In response to these “high-risk” situations, the EDB announced the establishment of a surprise inspection group designed to monitor private institutions, specifically checking student attendance and registration information to prevent unauthorized education activities. The ongoing police investigation is expected to shed light on the extent of the alleged conspiracy and its impact on the wider private education sector.

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