Hong Kong police arrested 127 people in a six-month operation targeting a Vietnamese-led syndicate suspected of illegal moneylending. — Photo courtesy of Hong Kong Police

HONG KONG — Hong Kong police have arrested 127 people, including 37 Vietnamese nationals, in a crackdown on a Vietnamese-led crime syndicate accused of loan sharking, operating illegal gambling dens and unlicensed bars, and helping undocumented immigrants find accommodation and work, according to Hong Kong media.

The arrests followed a six-month undercover investigation into the group in West Kowloon. Police raided eight premises on October 8 and 9, the South China Morning Post reported on Saturday.

Ten suspects were identified as core members, including a Vietnamese woman holding a Hong Kong identity card who is suspected of leading the syndicate.

The group is believed to have operated for at least a year, targeting Hong Kong’s Vietnamese community.

Loans with interest rates of up to 3,700 per cent

Police said the syndicate charged borrowers HK$100 a day for every HK$10,000 borrowed, equivalent to a compounded annual interest rate of about 3,700 per cent, far exceeding Hong Kong’s statutory lending-rate cap of 48 per cent.

Borrowers struggling to repay were allegedly drawn into illegal rotating savings schemes known in Vietnamese as hụi.

In one arrangement, 20 participants each contributed HK$5,000 over 10 days to form a HK$100,000 pool, with the suspected ringleader controlling the distribution of funds.

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

The syndicate was also suspected of operating gambling venues offering baccarat and Vietnamese card games, as well as two unlicensed bars where drugs were allegedly supplied.

Fake documents and suspected exploitation

The group allegedly used grocery shops and a Vietnamese association as fronts for its activities.

It was also suspected of helping undocumented immigrants find accommodation and jobs by supplying counterfeit Hong Kong identity cards and construction worker cards for HK$2,000 to HK$2,500 each.

Police said the group’s focus on Vietnamese customers made its activities harder to investigate, as some debtors were reluctant to report offences because of language barriers or concerns about their immigration status.

Officers seized more than HK$2 million in cash and valuable assets, along with loan records, suspected counterfeit-document equipment, gambling paraphernalia and suspected drugs. A car worth about HK$400,000 was also seized at the suspected ringleader’s home.

The suspects comprised 55 men and 72 women aged between 23 and 92. Police have not ruled out further arrests.

More than 7,000 Vietnamese people were living in Hong Kong as of September 2024, according to a Hong Kong government official.

The community includes long-established residents and people who moved to the city for work and other opportunities.

The allegations have not been proven in court. — VNS