According to Planet Daily, Hong Kong police have busted a fraud group that used London gold and virtual investment businesses as cover. The group used 50 shell companies and puppet accounts to launder HK$320 million in fraudulent money over the past year.
Chief Inspector Duan Yuk-heng of the Crime Unit of Hong Kong East Kowloon Region said that the fraud group used pyramid schemes to promote investment projects such as London gold and virtual currencies to the victims to lure them into participating. When the victim is fooled, group members will claim to pay cash or transfer money to a specific account. These application accounts are just a virtual trading platform and have nothing to do with London gold and virtual currencies in the market. Hong Kong police have arrested 19 men and women suspected of "money laundering" and "conspiracy to commit fraud".