Hong Kong police arrest 127 in Vietnamese-led loan sharking syndicate

Hong Kong police have arrested 127 people in a crackdown on a Vietnamese-led syndicate suspected of loan sharking, illegal gambling, unlicensed bars, and providing accommodation and jobs to illegal immigrants.

The arrests, made on Oct. 8 and 9, followed a six-month undercover operation targeting the group, which allegedly operated in West Kowloon.

The syndicate was also suspected of running illegal rotating savings schemes and helping illegal immigrants obtain forged identity documents and construction worker cards.

Those arrested comprised 55 men and 72 women aged between 23 and 92. Thirty-seven were Vietnamese nationals. Police said most of the syndicate's key members were Vietnamese people holding Hong Kong identity cards.

Ten suspects were identified as core members, including the alleged ringleader, a Vietnamese woman who holds a Hong Kong identity card, the South China Morning Post reported.

"The group’s operations were very closed, recruiting only among its compatriots," Superintendent Chiew Tsi-huen of the Organized Crime and Triad Bureau said on Saturday.

Police believe the syndicate had been operating for at least a year, using grocery stores and a Vietnamese association as fronts.

The group allegedly provided temporary accommodation and forged Hong Kong identity cards or construction worker cards for illegal immigrants, charging HK$2,000 to HK$2,500 (US$254 to US$318) per document to help them secure jobs, The Standard reported.

The syndicate was also suspected of operating several illegal gambling venues offering baccarat and card games, as well as two bars without liquor licenses. Police believe drugs were supplied at these locations.

Loan sharking and illegal savings schemes

Lending was the syndicate's main source of income. Borrowers were reportedly charged HK$100 in daily interest on a HK$10,000 loan. Police said the effective annual interest rate could far exceed Hong Kong's legal cap of 48%, according to the South China Morning Post.

The group also allegedly drew borrowers into illegal rotating savings schemes known locally as hui. Each scheme involved 20 members contributing HK$5,000 over 10 days to build a common fund of HK$100,000.

The suspected female ringleader controlled the distribution of the money, while participants faced additional fees and were not given clear information about how the funds were allocated.

Borrowers unable to repay their debts were allegedly threatened, assaulted or unlawfully detained. Some were reportedly forced to participate in drug trafficking.

Police said the syndicate was divided into separate units responsible for promoting loans, collecting debts and carrying out acts of violence.

The group targeted Hong Kong's Vietnamese community, a focus that police believe complicated the investigation. Many debtors were reportedly reluctant to report suspected crimes because of language barriers or concerns about their immigration status, The Standard reported.

During searches, police seized more than HK$2 million in cash and valuables, along with loan records, document-forging equipment, gambling devices and drugs. Officers also seized a car worth about HK$400,000 at the suspected ringleader's home.

All 127 suspects remain in custody as police investigate their backgrounds, sources of funds and alleged roles in the syndicate. Further arrests have not been ruled out.