HONG KONG — Two men were sentenced to extended prison terms Friday after admitting to laundering millions of dollars linked to sophisticated online recruitment and investment scams that targeted Hong Kong residents between May 2023 and January 2024.
The District Court sentenced one local man, 50, to 45 months in prison, and a mainland Chinese man, 34, to 38 months. Both sentences included a 20% enhancement requested by prosecutors, which the court granted, underscoring the severity of their roles as “mule account” holders. The pair collectively facilitated the movement of more than HK$15 million in criminal proceeds.
The arrests followed extensive police investigations into two separate but related fraud rings operating during the nine-month period.
Investment Scams Lead to HK$10 Million Laundering
In one case, the New Territories North Regional Crime Unit for Technology and Financial Crimes led an investigation after four victims reported losing a combined total of approximately HK$12.6 million. The victims were lured into depositing funds through seemingly legitimate websites or applications under the guise of high-return investments. They became suspicious when they were unable to withdraw their promised profits.
Police identified the 50-year-old local man as a key component in the operation. Between July and December 2023, the defendant used his personal bank accounts to process about HK$10 million derived from the scams.
The man was charged with one count of “handling property known or believed to represent proceeds of an indictable offense”—the legal term for money laundering. After pleading guilty, prosecutors sought the enhanced sentence, accepted by the court, resulting in the 45-month term.
Recruitment and Investment Fraud Nets HK$5.2 Million
In the second case, officers from the Border District’s Major Crime Unit investigated five victims who fell prey to separate online recruitment and investment schemes between December 2023 and January 2024. These victims reported cumulative losses of about HK$4.4 million.
The investigation led to the arrest of the 34-year-old mainland Chinese man in May 2024. Police determined he had used five different bank accounts to handle approximately HK$5.2 million in criminal funds between December 2023 and March 2024.
He also pleaded guilty to five counts of the same money laundering offense and, likewise, received a 20% sentence uplift, leading to his 38-month imprisonment.
Senior Superintendent Shin Man-yin of the police’s Financial Intelligence and Investigation Bureau emphasized the need for public vigilance following the sentencings. Authorities warned citizens against facilitating criminal networks by providing access to personal financial tools.
“Do not rent out or sell your personal banking or payment accounts,” Superintendent Shin stated. “These accounts are exploited by fraudsters for money laundering and receiving crime proceeds.”
Under Hong Kong law, individuals who assist fraud syndicates can face charges for obtaining property by deception, which carries a maximum penalty of ten years in prison upon conviction. Furthermore, those who rent out their accounts can be prosecuted under the Organized and Serious Crimes Ordinance (Cap. 455). Money laundering is punishable by up to 14 years in prison and a maximum fine of HK$5 million, underscoring the serious legal risks associated with acting as a financial facilitator for criminals.
Police confirmed they will continue to pursue those who aid fraudulent activities, urging the public to report any suspicious requests regarding their financial accounts immediately.
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