Nine people, mostly university students, have been arrested in Hong Kong over an employment scam that allegedly defrauded the government of HK$140,000 (US$17,890) in subsidies through an internship programme.
Police said they received a report from a local university in November that a man had allegedly used two companies to falsely recruit eight students for short-term internship positions in the innovation and technology sector via the institution’s job platform between 2023 and last year.
But the students were never required to perform any actual work. Instead, they received salaries through bank transfers to create payment records.
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The man then instructed them to return the funds in cash, offering HK$500 to HK$1,000 as compensation for their transport expenses.
The scheme enabled the companies to fraudulently claim HK$260,000 of government subsidies under the STEM Internship Scheme that the Innovation and Technology Commission launched in 2020. Of this amount, HK$140,000 had already been approved before the scam was uncovered.
Following a two-day operation on Wednesday and Thursday, officers arrested seven men and two women, aged 19 to 28, across various districts for conspiracy to defraud.
The suspects comprised the alleged mastermind, who registered as a company director, and the eight university students involved.
During the raids, police seized computers, mobile phones and relevant work documents.
All those arrested were released on bail pending further investigation and must report to police by mid-July. The case is being handled by the Western district’s technology and financial crimes unit.
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