During the course of a corruption investigation into suspected commission fraud by property agents, the ICAC has uncovered an alleged mortgage scam in which banks were cheated of mortgage loans in the region of $50 million in connection with village house transactions in the New Territories.

The scam was alleged to have been in operation for at least two years involving about 80 village houses.

Forty-nine purchasers of such village houses were arrested by the ICAC yesterday and today in an operation code-named "Clear Moon".

Fifteen others, including property agents, were earlier arrested in connection with the scam. All 64 arrestees have been bailed out.

ICAC investigation revealed that a syndicate had allegedly conspired to defraud at least two banks through a "zero down payment" scheme by advertising in newspapers that no down payment was required from purchasers.

Subsequent ICAC enquiries uncovered that since 1999, two property companies had allegedly been operating a fraudulent scheme referred to as the "zero down payment" scheme.

Under the alleged scheme, agents of the two companies had allegedly told prospective buyers that selling price of the property listed would be inflated by some 30 percent so that the potential buyers could obtain the full amount of the purchase price from the bank as mortgage.

The inflated amount will be returned to the purchaser, disguising as "renovation fee".

Meanwhile, during today's operation, a woman who resisted arrest had allegedly twice attacked a female ICAC officer at a premises in Yuen Long. Police assistance was sought and the woman was eventually arrested by the ICAC.

The ICAC officer had been sent to hospital for medical examination.

An ICAC spokesman noted that it was criminal offences to resist arrest, obstruct ICAC officer in executing duties and assault the officer.

ICAC's investigation continues.