Hong Kong police smash loan shark syndicate, 127 arrested
Hong Kong police have arrested 127 people accused of running a loan shark and illegal lottery ring targeting fellow Vietnamese in the western Kowloon area. The group charged interest rates of up to 3,700 per cent, far above the legal limit, and used violence and forced drug dealing to recover debts.
Police have smashed a criminal syndicate operating in the western Kowloon area, arresting 127 people including 10 alleged ringleaders and core members, on suspicion of conspiracy to lend money at extortionate rates and operating illegal rotating credit associations. Seized criminal assets include more than HK$2 million in cash and property.
Those arrested, aged between 23 and 92, used a fellow-villagers association as a cover, offering illegal services only to fellow Vietnamese, police said. The syndicate charged effective annual interest rates of up to 3,700 per cent on loans, vastly exceeding the legal maximum of 48 per cent. When borrowers could not repay, they were beaten or forced to sell drugs to clear their debts.
Police first noticed the group operating in the Sham Shui Po district early this year. It provided temporary accommodation to fellow Vietnamese who entered Hong Kong illegally, charging HK$2,000 to HK$2,500 to produce forged identity cards or recognisance papers. It also ran illegal gambling dens and unlicensed bars, but its main income came from loan sharking and illegal rotating credit associations.
For every HK$10,000 lent, the group charged daily interest of HK$100. With compound interest, borrowers quickly fell into a debt trap. The syndicate then induced debtors to join so-called rotating credit associations, where they made regular payments to reduce their debts, but hidden fees were deducted.
Police said the syndicate was controlled by a Vietnamese woman holding a Hong Kong identity card, who channelled funds to a central office for processing. Its monthly turnover exceeded HK$1 million. The group was highly alert, so the Organised Crime and Triad Bureau deployed undercover officers for six months before carrying out arrests over the past two days. All suspects remain in custody; four illegal immigrants arrested have been handed over to the Immigration Department.
