Hi DJ, I am thinking of diving, as usual, but without wife, unusually. Wife needs to go to Paris yet again as her brother needs logistic support during his cello Rostapoviche (sp?) Competition.
On financing my holiday, here is a possibility - it appears that we Hong Kongers know what to do to brokers ...
Chugs, Jay
biz.scmp.com
QUOTE
Monday, September 3, 2001
Gullible brokers pay dearly after lure of a 'free lunch'
ENOCH YIU
They may have an image as hard-headed money men, but Hong Kong's brokers apparently cannot resist the lure of an easy pay-day.
Ignoring the economic maxim that there is "no free lunch", they have been falling prey to a gang of tricksters whose front-man poses as the representative of a rich mainland investor.
The gang has struck three times since early July, netting between HK$100,000 and HK$2 million from gullible brokerage executives.
In each case, the company is approached by a man offering "golden investment opportunities".
The man claims to be acting for a mainland investor holding tens of millions of dollars who is looking for a reliable company through which to invest in the SAR. He then invites a senior executive of the brokerage to meet the "investor" at a reputable hotel the following day.
On attending, the executive is told to wait on the pretext that the mainland investor is too busy to see him, and is then invited to have lunch.
During lunch, he is introduced to three or four other men who appear not to know each other. After the meal, one of the men suggests a game of cards to kill time as they wait to see the mainland investor.
The card game is rigged, with all the participants working together to cheat the broker.
Afterwards, the broker's executive finds himself unable to contact the middle man again and - needless to say - never manages to meet the "mainland investor".
Police have warned brokers to be on their guard against the scam after being contacted by the three executives who were cheated.
"Judging from these three cases, it appears that this group of criminals is targeting professionals from the financial sector," the police said in a letter to the Securities and Futures Commission.
The deception, which police described as well-planned, is termed a "Tin Sin Kuk" in Cantonese, or "fairy-tale trap".
The scam appears to capitalise on the lure of "hot" mainland money that has flooded into the Hong Kong stock market in recent months.
The police said any brokerage houses approached by the gang should call the officer in charge on 2859 8561.
The Hong Kong Stockbrokers Association has also issued a warning letter to its members. In a second letter, the association warns of another fraud targeted at brokers.
The association said several clients recently had opened stock trading accounts with some stockbrokers and then deposited cheques.
Before the cheques were cleared - which usually took two days - the brokers had executed buying orders for the clients. The investors then took the shares and sold them through another broker before the cheques bounced.
"It appears these clients may come from the same source and try to trade with different brokers for the purchase of particular stock," association chairman Paul Fan Chor-ho said in the letter.
"This is an urgent warning for brokers to take necessary precautions against any risk of such a nature."
UNQUOTE |
