ICAC smashes syndicates allegedly obtaining loans for unqualified borrowers by corruption
2006-4-22
The ICAC has smashed two syndicates allegedly involved in assisting unqualified borrowers to obtain personal installment loans from financial institutions by corrupt means.
Upon receipt of corruption complaints, a total of 36 persons have been arrested in the past two days (Thursday and Friday) in an operation code-named " Stormy ".
The arrestees included three employees of two financial institutions, 15 middlemen, and 18 loan borrowers.
ICAC investigation revealed that the two syndicates, allegedly headed by five operators of three financial consultants, had allegedly offered bribes to employees of several financial institutions to help unqualified borrowers apply for personal installmen t loans.
To facilitate the scam, it was alleged that the syndicates had recruited a number of middlemen, including operators and employees of the financial consultants concerned, to help fabricate supporting documents such as employment records and income proof in relation to such applications.
Investigation revealed that with the alleged corrupt connivance of the employees of the relevant financial institutions, those applications filed by unqualified borrowers were approved.
The corruption inquiry is continuing.
Upon receipt of corruption complaints, a total of 36 persons have been arrested in the past two days (Thursday and Friday) in an operation code-named " Stormy ".
The arrestees included three employees of two financial institutions, 15 middlemen, and 18 loan borrowers.
ICAC investigation revealed that the two syndicates, allegedly headed by five operators of three financial consultants, had allegedly offered bribes to employees of several financial institutions to help unqualified borrowers apply for personal installmen t loans.
To facilitate the scam, it was alleged that the syndicates had recruited a number of middlemen, including operators and employees of the financial consultants concerned, to help fabricate supporting documents such as employment records and income proof in relation to such applications.
Investigation revealed that with the alleged corrupt connivance of the employees of the relevant financial institutions, those applications filed by unqualified borrowers were approved.
The corruption inquiry is continuing.