Hong Kong police arrested a principal and a staff member of a private school, Innolife School (Kowloon Tong), on Wednesday, following an investigation into alleged conspiracy to defraud and financial mismanagement that led to its registration refusal by the Education Bureau. The arrests come as the school faced multiple controversies, including accusations of operating as a “shell institution” for mainland students seeking local academic status and a high-profile case involving a student with suspected dual Hong Kong and Shenzhen enrollment.
The two suspects, identified by police as a 36-year-old male principal surnamed Kei and a 44-year-old female staff member surnamed Chiu, were detained by the West Kowloon Regional Crime Unit 1B. They face charges of conspiracy to commit fraud and deception, stemming largely from complaints by parents over unreturned advance fees.
Fraud Allegations Over Unreturned Placement Fees
The full-time international school, which began admitting students in 2022, drew scrutiny after a parent reported significant financial deception to authorities. According to the investigation, the victim enrolled their child in December 2023 and was required to pay approximately HK$380,000 in placement, administration, and sundry fees. The school reportedly promised these funds would be fully refundable upon the student’s graduation or transfer.
However, after the Education Bureau (EDB) ordered the school to cease operation in July 2024, ostensibly due to unsatisfactory school management and financial status, a substantial portion of the fees was withheld. The parent said they were notified in June about a change in school ownership, and while promised a full refund regardless of whether their child stayed or transferred, they ultimately received only HK$95,000. Subsequent attempts to contact the principal regarding the outstanding balance were unsuccessful, leading the parent to file a police report.
Controversy Over Academic Status and School Registration
The EDB’s decision to reject Innolife School’s registration followed mounting concerns that the institution was engaging in what the government calls “borrowing a shell to operate”—a scheme where local schools collaborate with mainland educational bodies, such as Shenzhen’s Hanhai International Education, to offer programmes like the UK’s A-Levels. Such arrangements may mislead students into believing they can gain local academic qualifications and apply to Hong Kong universities as local students by studying primarily on the mainland and only briefly attending the Hong Kong campus.
The controversy was further amplified by the case of a student who won a gold medal at the International Physics Olympiad. The Form Four student was later found to possess suspected dual Hong Kong and Shenzhen academic enrollment. The Hong Kong Academy for Gifted Education subsequently froze the student’s participation and training qualifications pending an investigation. The EDB has emphasized it is taking such cases seriously and has established dedicated teams to conduct surprise inspections and review student enrollment and attendance records at “high-risk” schools.
Broader Financial Misconduct Uncovered
Adding to the school’s woes, its affiliated institution, Enlightenment Education, was found to be in default of mandatory provident fund (MPF) contributions. The Mandatory Provident Fund Schemes Authority (MPFA) reported that the company owed over HK$130,000 in contributions and surcharges for eight employees between March and July 2024. While the MPFA has recovered approximately HK$50,000, it is proceeding with legal action to pursue civil claims for the affected employees.
The arrests signal the government’s commitment to stringent enforcement against private educational institutions suspected of financial fraud and operating illegal educational models. The ongoing police investigation by the West Kowloon Regional Crime Unit is expected to uncover the full extent of the alleged conspiracy, while the EDB continues to monitor the private education sector to prevent the erosion of academic integrity and student welfare.
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