Hong Kong police have arrested six individuals for allegedly obtaining over HK$20 million (US$2.57 million) in government loans through fraudulent means under a scheme that offered a full loan guarantee.
Officers from the Commercial Crime Bureau said on Wednesday that the six suspects, associated with four different companies, had applied for government loans under the Special 100 per cent Loan Guarantee Scheme. They were subsequently arrested on suspicion of fraud or conspiracy to defraud in an operation code-named Hitstring.
“The investigation is still ongoing and we are actively tracing the capital flow, ” said chief inspector Mok Lai-king of the bureau.
The six individuals arrested include three men and three women, aged between 29 and 45. Two of the suspects are a married couple, while the others are directors or staff members of the companies involved.
Under the scheme, the authorities provided a full loan guarantee to help small and medium-sized enterprises alleviate financial difficulties and overcome challenges during the pandemic.
The scheme allowed companies to borrow a maximum of HK$9 million, provided that their sales revenue for a specific month had decreased by at least 30 per cent compared to the average of the previous three months.
