Suspects in loan shark case out on bail
One of the documents seized by the Police.
ALL 10 persons arrested in connection with illegal lending activities preying on Filipino domestic workers have been released on police bail.
A Hong Kong Police Force spokesman told Hong Kong News on Thursday that those arrested were out on bail.
“They will report back here in the mid of April,” he said.
In a separate interview, an official of the Philippine Consulate General said there could be other groups or persons operating illegal lending activities and preying on Filipino household service workers in Hong Kong.
The source said the Consulate’s role in the case was to help a Filipino worker who sought their assistance after failing to recover her passport even after paying the full amount of her loan.
“We tried to settle the case by contacting the middle person pero walang nangyari and then the Police conducted their own operation leading to the raid,” the official said.
The source added that they discovered the modus after numerous requests for travel document from Filipino domestic workers who declared that they lost their passports.
“Lahat ng ito reklamo ng OFWs. Nagreklamo sila, nagpunta sila dito, at nag-draft ng affidavits kasi we call the middle persons and then we tried to negotiate the release of the passport whether by full payment or after full payment or waiver ng interest,” he said.
On Tuesday, police said persons behind the loan shark syndicate were estimated to have profited at least $2 million from the illegal activitiy.
Chan Hon-ming, superintendent of Organized Crime and Triad Bureau of Hong Kong Police Force, said the syndicate gave loans to more than 1,200 borrowers between March and October 2016. All the borrowers were Filipino domestic workers.
“These loans, ranged from $4,000 to $15,000, were given out at a monthly interest rate of 10 percent and the borrowers all surrendered their passports and contracts for collaterals.
“Over this short period of eight months, the syndicate had already given out a total of $10 million in cash and the estimated minimum return the syndicate earned from these loans amounted to $2 million,” Chan said.
Besides the eight Filipino women, whose ages ranged 34-58, a local couple, the alleged financiers, was also arrested.
“Our investigation revealed a local couple was in control and operating this syndicate by funding the loans. They used their own Filipino domestic helper as assistant to run the loan shark scheme and outreach to other Filipino domestic helpers for recruiting runners and borrowers in order to expand their ‘loan shark business’.
“These assistants and runners were responsible to give out the loans and collect debts whereas they would surrender the collaterals to the couple until redemption was arranged,” Chan said.
The police, Chan said, started their operations this month. Arrests were made on Mar. 12 after passports were passed on by a Filipino female to the couple. Raids were also conducted at various premises “including a rented service office used by the syndicate and the residence of the syndicate members”.
The syndicate members, the police said, were arrested for “Conspiracy to lend money at excessive interest rate” and “Conspiracy to blackmail”.
The offense of “lending money at excessive interest rate” carries a maximum penalty of 10 years imprisonment and a fine of $5 million under the Money Lenders Ordinance in Hong Kong.
The police also said those who may wish to share information about loan shark syndicates preying on Filipino domestic workers may call 6348-1240.