Ponzi Scheme Scandal Rocks Macao, Local Woman Arrested for Cheating Over HK$223 Million from 110 Victims

A massive Ponzi scheme has been uncovered in Macao, with a local woman arrested on Thursday for her involvement. The suspect, surnamed Tai, allegedly cheated at least 110 people out of over HK$223 million.

The Scam

According to Judiciary Police spokesman Leng Kam Lon, the scam began when a local man was persuaded by someone to deposit HK$200,000 into the operation in June 2021. The suspect promised an eight percent interest rate each month. Initially, the victim received the promised interest, but stopped receiving any payments in January 2020.

Further Investigation

During the investigation, PJ officers received further reports from 12 other victims who had been defrauded in a similar manner. The total amount lost by these 13 victims was over HK$17.21 million, with each victim losing between HK$200,000 and HK$6.5 million.

The Ponzi Scheme

Further investigation revealed that the two people-in-charge of the operation were not gaming promoters as they claimed, but were instead running a Ponzi scheme to use victims’ deposits to pay other depositors’ interest, thereby luring more people into the high-interest deposit plan.

Arrest and Charges

Under questioning, Tai admitted to acting as a “lobbyist” to persuade people to deposit money in the casino-based operation linked to a VIP room. She was transferred to the Public Prosecutions Office on Thursday and is facing a fraud charge.

Ongoing Investigation and Warning

The PJ is continuing their investigation to track down other suspects still at large and recover the fraudulently obtained money. The case highlights the need for vigilance against financial scams and the importance of reporting suspicious activities to authorities.