Six held over HK$14m agarwood investment 'scam'

Police on Thursday said they smashed a cross-border syndicate accused of running an elaborate investment fraud centred on agarwood trees, arresting six people and seizing more than HK$14 million linked to the scheme. The suspects, aged between 52 and 66, include the mastermind and several core members of the group, the force said. Officers raided the company's office and warehouse in Kwun Tong and the residences of those arrested. Since September, officers have received reports from 21 victims – most of them elderly – who fell for investment schemes promoted by a local company between 2017 and this year. Individual losses ranged from HK$30,000 to HK$1.9 million. Police said the company rolled out at least four investment plans over the years. The earliest involved purchasing agarwood trees for HK$10,000 each, with a guaranteed monthly return of HK$300 – an annualised yield of 36 percent – and a promise to refund the full principal after three years. Starting in 2024, some investors found they could no longer redeem their principal or collect interest, with the company fobbing them off with various excuses. It later introduced new schemes to persuade investors to roll over their assets – including a 25-percent interest intellectual property licensing plan, a proprietary cryptocurrency,...