HONG KONG: Police have arrested seven alleged loan sharks, four men and three women aged between 23 and 48. Police say the seven made loans at interest rates of more than 540 percent a year.

A police spokesman said yesterday the syndicate had lent more than HK$8 million to around 150 debtors over the past few years and collected monthly interest payments of over HK$600,000.

The syndicate advertised supposedly "low" interest rates in magazines and on the Internet, with no proof of income required. Some debtors were forced to allow their bank accounts to be used for money laundering.

Tsang Shuk-yin, acting chief inspector of the New Territories North Regional Crime Unit, said officers of Regional Crime Unit of New Territories North mounted a citywide operation called "Matchholder" last Tuesday, arresting the seven suspects. A large number of documents, information on debtors, bank cards and computers were seized during the operation.

The seven were arrested for lending money at excessive interest rates and dealing with property known to represent proceeds of an indictable offence. All are being detained while inquiries continue.

She said the investigation has been made particularly difficult because the syndicate used multiple telephone numbers and addresses.

A 28-year-old woman borrowed HK$8,000 from the syndicate in 2007 and was subsequently forced to repay HK$1,200 in interest every 10 days. The woman paid HK$40,000 in 2008, but the syndicate claimed she still owed HK$70,000. The victim subsequently complained to police.

The police remind the public not to believe advertising claims by moneylenders and not to borrow money from loan sharking syndicates. The syndicates charge excessively high interest rates that are not clearly spelled out in the beginning.

The police also cautioned citizens not to allow others to use their personal bank accounts for unlawful purposes. To do so constitutes a money laundering offence.

(HK Edition 07/31/2009 page1)