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Investment Fraud in Hong Kong
In receent years, Investment Fraud case happens often in Hong Kong. Many potential investors are induced by mispresentation and false promise of high return to invest in various security trading or forex trading, such as Loco London Gold trading, precious metals trading, forex trading, pre-IPO investment, etc. Victims of such investment fraud locate all over the world, the majority of whom are overseas Chinese in Australian, American, Canada, Singapore, etc.
How does the fraudster operate an investment scam?
The typical senerio is, the fraudster get aquainted with potential victim social media such as facebook, etc. The operation of a fraud involves :-
1. Using attractive lady / man to find potential investors through social apps and then induce the potential investors to open a trading account in unscrupulous financial company;
2. Making promise of high return to induce potential investors to deposit funds into bank account designated by the fraudster for the purpose of so-called investment;
3. The trading software (app) allows the investor to enquire the “trading account balance” and “trading records, but client is not allowed to withdraw the investment funds and profit;
4. Fabricating various reasons to induce client continue to pay funds to its designated bank accounts when client requests to withdraw funds from the trading account;
5. Disappear of block its contact with client when client is not willing to pay further funds.
Investment Scam Recovery- Legal Basis for a Civil Litigation
1. Unjust Enrichment: if the said investment if a scam, the person receiving the investment funds would be enrichment unjustly as result of the victim’s loss.
2. Had and Receiving / contrusted trust: Depending on the circumstances, the person receiving the investment funds may have receive the victim’s funds on constructive trust for the benefit of the victim.
3. Misrepresentaiton: Company using fraudulent statement to induce clients to invest and causing the client to suffer loss should compensate such loss to the clients;
4. Unauthorized Trading (tort): The said agents of the Company operate the client’s account to trade in and out without or agains the client’s instruciton that causes client to suffer loss. In such in circustances the company should be responsible for compensation;
5. Some cases may involve criminal offence of fraud.
Investment Fraud: The Victim’s Legal Solution
For LLG Fraud victims, depending on the actual circumstances, they can consider the following legal measures :-
1. Report the case to Hong Kong Police Force; and
2. Initiate civil proceedings in Hong Kong Court.
For LLG Fraud case, you are welcome to contact our lawyer of litigation team for a consultion.