Hong Kong police arrested six people allegedly tied to a nine-year investment scam run by a suspected cross-border criminal syndicate. The alleged scam involved HK$14 million (US$1.78 million) and purported investment opportunities in agarwood, cryptocurrency and car-washing businesses. Superintendent Allan Chu Ming-lun of the commercial crime bureau said on Thursday that investigations began in September after police received 21 victim reports. The victims reported investing in various products offered by BBB Group (Hong Kong) as early as 2017. Most victims were aged between 52 and 82. Individual investments ranged from HK$30,000 to HK$1.9 million, with the 21 victims investing HK$14 million in total.
Police arrested two men and four women aged between 52 and 66 on Wednesday. One suspect held a Malaysian passport and was identified as the scheme's mastermind. The remaining five suspects are Hong Kong residents. Officers searched the firm's premises in Kwun Tong and seized about HK$540,000 in cash. Officers also seized 25 laptops and mobile phones, investment contracts and various suspected agarwood goods.
The Securities and Futures Commission placed BBB Group (Hong Kong) on the alert list on Wednesday. The commission also listed BBB Group (Malaysia) and BBB Oud Living (HK), which were deemed linked to the agarwood investment plan. Chu said BBB Group claimed to operate offices worldwide, including in Malaysia, Singapore and New York. BBB Group claimed to operate multiple large agarwood plantations in Malaysia. BBB Group also claimed to work with other companies in Malaysia to produce and sell agarwood products, including essential oils and tea leaves. Chu said core syndicate members took investors to agarwood plantations to increase investor confidence.
Chu said the company offered at least four types of investment plans between 2017 and this year. The firm also allegedly organised investment talks, trips to mainland China and galas for investors and friends of investors. Chu said the firm used various excuses to delay withdrawals and evade repayment obligations.
The first investment plan launched in 2020 with a promise that purchasing an agarwood tree for HK$10,000 could generate HK$300 per month. The promised payments amounted to an annual return of 36% over three years. Police said investors were also told that investors could recover the principal in full. Chu said monthly returns were recorded as membership points in a company-provided mobile app. Chu said investors had to complete withdrawals at the firm's office. However, police said some investors realised from 2024 that principal and returns could not be retrieved. BBB Group staff allegedly delayed withdrawal requests while introducing other plans and inviting victims to switch schemes.
A plan introduced last year offered investors the opportunity to become BBB Group licensees with the right to promote the firm's products. Police said the plan guaranteed HK$210 in interest, amounting to an annual return of 25% over three years. Police said the principal would be retrievable at the end of that period. Chu said interest payments under the IP scheme continued for only two months before the company used various excuses to delay withdrawals and interest payments.
The company used the same tactic again this year when BBB Group launched a cryptocurrency called iBBB. BBB Group claimed that iBBB tokenised agarwood trees. Chu said iBBB's value had fallen by 99.92% since launch. Chu said the firm recently introduced another plan involving investment in automated car-washing stations in mainland China. The firm allegedly offered existing investors a bonus of 10% to 30% of new investment amounts to attract further investment.