In an anti-corruption investigation in the private sector, the CCAC detected a case involving several bank workers who colluded with a crime syndicate to defraud of mortgage loans. Nine persons, including the mastermind and the core members of the syndicate and several bank workers, allegedly conspired with over 370 borrowers to falsify documents in order to defraud 11 banks into approving 362 fraudulent loan applications, which involved a sum totalling over MOP770,000,000. The illicit gains totalled almost MOP220,000,000. The CCAC believed that it has already shut down the syndicate, which has been running for over 10 years.

The CCAC received a report alleging that a scam syndicate masterminded by a man surnamed Chan colluded with some local banks’ workers responsible for handling loan applications and some other persons to defraud the banks into approving mortgage loan applications by means of document forgery. Following an in-depth investigation, the CCAC discovered that the syndicate apparently engaged in real estate brokerage, but actually, they secretly provided personal loans and charged the borrowers large amounts of interest. When the borrowers were unable to repay the loans, they would be requested to participate in document forgery for application for bank mortgage loans, which would serve as the repayments. In addition, those borrowers were charged large amounts of handling fees. The syndicate also looked for citizens who desperately needed money in casinos or through third parties or through newspaper advertisements for “speedy loan approval” in an attempt to defraud the banks into approving the fraudulent mortgage applications with falsified proofs of income and passbook copies. Some bank manager even falsified documents on his own and used them to apply to different banks for loans, which were then spent on investment in and operation of the syndicate and purchase of borrowers’ properties at a price below the market price. The CCAC found that between 2010 and 2020, the syndicate already defrauded the banks of loans with a total amount of at least MOP770,000,000 for over 370 persons and received illicit gains totalling over MOP219,000,000.

The CCAC also found in the investigation that some bank workers involved had violated the provisions of confidentiality of financial institutions by illicitly revealing customers’ data to members of the syndicate. The members even tutored some of the borrowers in responding CCAC officers’ questions in an attempt to interfere in and evade the investigation.

The case has been referred to the Public Prosecutions Office upon completion of the investigation. It involves crimes of criminal association, document forgery and fraud involving considerably high value as well as violation of the duty of secrecy provided by the Personal Data Protection Act. Following the suggestion of the Public Prosecutions Office, the judge of the Criminal Investigation Court has ordered the application of coercive measure to prohibit departure of some of the syndicate members. The CCAC would like to remind bank credit granting workers that they shall carry out their duties in strict compliance with the relevant laws, regulations and regimes.