Hong Kong police arrested 127 people on Oct. 8 and 9 after a six-month operation targeting an alleged West Kowloon syndicate.
Police said the Vietnamese-led group was suspected of loan sharking, illegal gambling, running bars without licences, and providing accommodation and jobs to illegal immigrants.
Police said the case centred on Hong Kong's Vietnamese community, which the alleged network targeted. Many debtors were reportedly unwilling to approach authorities because they faced language barriers or worried about their immigration status.
Police said the arrested group included 55 men and 72 women, whose ages ranged from 23 to 92. Thirty-seven detainees were Vietnamese nationals.
Police said Vietnamese holders of Hong Kong identity cards made up most of the syndicate's key members. Ten suspects were identified as core members, including an alleged female ringleader who is Vietnamese and holds a Hong Kong identity card.
The group’s operations were very closed, recruiting only among its compatriots
Police believe the organisation had been active for at least a year. It allegedly presented grocery stores and a Vietnamese association as legitimate fronts.
The group was also suspected of arranging short-term accommodation for illegal immigrants. Police said it supplied forged Hong Kong identity cards or construction worker cards, charging HK$2,000 to HK$2,500 per document to help people obtain jobs.
Several illegal gambling locations allegedly operated under the network, offering baccarat and card games. Police also suspected that two bars operated without liquor licences and that drugs were supplied at the venues.
Loans formed the alleged financial core
The syndicate was believed to rely on lending as its main source of income. Police said a HK$10,000 loan could carry daily interest of HK$100 for borrowers, a rate that could go well beyond Hong Kong's legal limit of 48 percent a year.
| Interest-rate measure | Reported figure | Source description |
|---|---|---|
| Daily charge | HK$100 on a HK$10,000 loan | Police account of the alleged lending terms |
| Hong Kong legal cap | 48 percent a year | Police comparison |
| Compounded annual rate | 3,700 per cent a year | Separate reported calculation |
Police said the pack reports two calculations for the alleged lending cost: the effective annual rate could far exceed the 48 percent legal cap, while a separate compounded calculation put it at 3,700 per cent a year.
Borrowers were also allegedly brought into illegal rotating savings schemes called hui locally. Each one had 20 members, who paid HK$5,000 over 10 days to build a shared fund of HK$100,000.
The suspected ringleader controlled how that money was distributed, police said. Participants allegedly faced extra fees and were not given clear details about where the funds went.
Those unable to clear their debts were allegedly subjected to threats, assaults or unlawful detention. Some were reportedly forced to participate in drug trafficking.
Police said the syndicate separated its work among units that promoted loans, collected debts and carried out violence. Its closed recruitment pattern and focus on the Vietnamese community were believed to have complicated the investigation.
Searches produced cash and alleged operating tools
During searches, officers seized more than HK$2 million in cash and valuables. They also found loan records, equipment used to forge documents, gambling devices and drugs.
Police raided eight premises on October 8 and 9 as part of the operation.
- At least a year before the raidsAlleged operation
Police believe the syndicate was active and used grocery stores and a Vietnamese association as fronts.
- Six months before the arrestsUndercover operation
Police conducted an investigation targeting the alleged West Kowloon group.
- Oct. 8 and 9Arrests and searches
Police arrested 127 people and raided eight premises.
- Latest informationInvestigation continues
All 127 suspects remain in custody while police examine their backgrounds, sources of funds and alleged roles.
The backgrounds, sources of funds and alleged roles of the 127 suspects remain under investigation. Police have not ruled out further arrests.
All 127 suspects remain in custody as police continue the investigation.
