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New tactics against Loco-London gold fraud
 Talking tactics: CCB WSIP Iris Lee |
Commercial Crime Bureau officers have developed tough new tactics to tackle Loco-London Gold (LLG) trading fraud.
The new strategies proved fruitful after the jailing of five men and two women for swindling six women into investing in LLG/silver trading between July and August, 1999. Their losses were over $290,000.
The seven were found guilty of conspiracy to defraud and failure to keep records, receiving sentences of up to four years prison on October 5 at the District Court.
Woman Senior Inspector Iris Lee Suk-ping of CCB Fraud Division Team Three C said the conviction set a benchmark for future investigations and prosecutions.
She said the new tactics used successfully in the case were developed by a working group in May last year.
In view of the recent rise in LLG/silver trading fraud, the working group studied possible improvements to investigation tactics and a special investigation team was deployed to conduct them. WSIP Lee said the team, led by Chief Inspector Chan Man-yin, studied culprits' modus operandi and developed investigation skills.
"In most of the cases, no accounting documents and transaction records could be located in the companies involved. The non-existence of these documents proved to a certain extent that the operation of the companies were a scam since genuine LLG traders kept those records for legal protection," she said.
"To help differentiate legitimate and fraudulent LLG/silver traders, some experts were invited to explain the genuine operation in court.
"We also tried to make use of the Organised and Serious Crime Ordinance powers, such as Production Orders, to assist our investigation."
A detailed checklist on the handling of LLG fraud cases and an outline of the modus operandi was compiled and distributed to different formations last December for consideration, and endorsed.
The special team later visited all land Regions giving seminars on the new tactics and offering assistance to ensure each formation was capable of combating the crime and nabbing fraudsters.
Meanwhile, the tactics saw another six men and a woman convicted of conspiracy to defraud on November 7 in another LLG fraud case.
Sentencing was adjourned to November 28.