You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
CHAPTER 4COMMERCIAL CRIMESINTRODUCTION4.1 “Commercial Crime” is not a single and legally defined offence,but a mixture of fraud, commercial deception, false accounting, and otheroffences of a similar nature.4.2 The following sections provide an overview and comparativeassessment of the annual figures for commercial crimes recorded in 2004.COMMERCIAL CRIMES AND SYNDICATED FRAUDS4.3 Serious and syndicated complaints showed a downward trend of17% compared with 2003 and the reported loss involved was 2% lower. It isbelieved that the improving economy and police efforts in enforcement andeducation, coupled with recent enhanced awareness of and focus upon corporategovernance issues, have contributed to this trend.2003 2004 % ChangeNo. of Complaints 83 69 16.8%↓Total Reported Losses(HK$ million)1,514 1,485 1.9%↓4.4 Six topical commercial and syndicated frauds that havesignificantly influenced the society are highlighted below. They are Letter ofCredit Fraud, Pyramid Scheme Fraud, Loco-London Gold Fraud, ModellingAgency Fraud, West African Fraud and Bankruptcy Related Fraud.Letter of Credit Fraud4.5 During 2004, seven Letter of Credit (L/C) fraud cases werereported, which marked a decrease of 36% against 2003. Among the sevenreported cases, only two actually occurred in 2004. The remaining cases tookplace during or before 2003.4.6 The reported loss amount increased slightly compared to 2003. Itwas mainly attributed to one case that had incurred a loss of HK$171 million.108
Change language