Hong Kong police arrest 11 for allegedly conducting fraud scheme for early MPF withdrawals

Hong Kong police have arrested 11 people from a fraud syndicate that allegedly helped more than 800 residents withdraw HK$145 million (US$18.7 million) from their Mandatory Provident Fund (MPF) savings prematurely using fake documents.

The force said on Friday that the racket operated in the Tsim Sha Tsui office of a financial consultancy firm as a front and persuaded people to withdraw their MPF savings earlier than permitted.

Inspector Lam Ying-pan, of the Wong Tai Sin district crime squad, said members from the syndicate lured people into applying for the early withdrawal of their MPF contributions, claiming “the process was simple, fee-free if unsuccessful, and not illegal”.

If the applicants successfully withdrew their funds, they were charged a fee ranging from 10 to 30 per cent of the money involved, with one case involving a HK$70,000 payment, Lam said.

“To avoid detection by police, the gang primarily accepted fees in cash from contributors,” he said.

Police believe the syndicate handled 837 applications for early fund withdrawals amounting to HK$145 million.