In order to lower the impact of the fifth epidemic wave on local SMEs, the HKSAR Government launched “Special 100% Loan Guarantee” scheme to provide low-rate credit. However, fraudsters made false instrument such as bank statement and MPF records etc. They obtained around HKD 280 million already and planned to apply for HKD 100 million more. The Commercial Crime Bureau (CCB) of the Police investigated and arrested 38 persons including the mastermind, company directors and staff. One member claimed that she worked in 22 companies and had around HKD 200,000 as monthly salary.1
Bizmagnet emphasizes that making or using false instrument for government funding is an offence. Convicted is subject to 14-year imprisonment maximum punishment.2
Reading: False statement for government fund defraud – maximum imprisonment of 14 years
Our readers and clients understand thoroughly that criminal act such as fraud or bid rigging will result serious legal consequences. However, many fraudsters solicits SMEs to offend. We remind that you should consider a trustworthy consultant
- (Chinese only) “100% Loan Guarantee” fraud and 38 persons arrested，AM730，https://www.am730.com.hk/
- Section 16A, Cap. 210 Theft Ordinance and Section 71-76, Cap. 200 Crimes Ordinance, HK Law https://www.elegislation.gov.hk/
