Hong Kong police bust agarwood investment scam syndicate, arrest six
Hong Kong police have dismantled a transnational syndicate linked to agarwood tree investment fraud, arresting six people and seizing HK$14 million in connection with the scheme. Most victims were elderly, with losses ranging from HK$30,000 to HK$1.9 million.
Hong Kong police have dismantled a transnational criminal syndicate linked to an agarwood tree investment scam, arresting six people and seizing HK$14 million in connection with the scheme. The victims, mostly elderly, suffered losses ranging from HK$30,000 to HK$1.9 million each.
The arrested individuals, two men and four women aged 52 to 66, are suspected of being core members responsible for recruiting investors and promoting the investment plans. They face charges including obtaining property by deception. Police are investigating the role of each suspect and believe the syndicate's mastermind is a person holding a foreign passport.
Chief Inspector Chu Ming-lun of the Commercial Crime Bureau said police have received reports from 21 citizens since last month. The victims said they had participated in investment plans offered by a local company, "Good Good Group", since 2017. The company allegedly used various excuses to avoid paying promised interest and returning principal amounts as agreed in the investment contracts.
The company claimed to have offices worldwide and said it operated multiple agarwood tree plantations in Malaysia, producing and selling products such as ornaments and essential oils. It allegedly boasted strong profitability and even arranged for investors to visit the plantations.
Over the past few years, the company launched at least four investment plans, including one where investors could buy an agarwood tree for HK$10,000, with a guaranteed monthly return of HK$300 and full principal repayment after three years. Last year, it introduced a plan allowing investors to become licensed distributors, with the right and responsibility to promote the company's products, guaranteeing a 25 per cent return. The company later launched its own cryptocurrency, claiming to tokenise agarwood trees, but the currency has depreciated by more than 99 per cent since its launch.
Police said the company used various excuses to delay investors' withdrawal requests, evading repayment obligations.