The Sun Yee On triad leader, “Xi B,” has been aggressively expanding his empire in recent years. Over the past two years, his influence has spread across Hong Kong, Kowloon, and the New Territories. He has profited enormously through various criminal activities and laundered the proceeds through his family, close associates, and fellow members, amassing over HK$100 million to purchase luxury homes and luxury cars. Police, aware of his ambitions and determined not to allow the gang’s expansion to continue unchecked, launched an intensive two-year investigation, culminating yesterday with the arrest of 82 individuals, including “Xi B,” his family members, and key members. During the operation, police froze HK$1.13 billion and seized approximately HK$8.26 million in cash and over HK$7 million worth of evidence.
After two years of investigation, the police investigation closed yesterday with 82 arrests.
Police described the triad as having grown in strength over the past two years. The gang’s methods of operation are sophisticated, encompassing a wide range of criminal activities, and its members are extremely cunning and brazen. In addition to engaging in traditional criminal activities in Hong Kong, Kowloon, and the New Territories, including prostitution, gambling, drugs, illegal money lending, fraud, and other violent activities to generate huge profits, the syndicate also cleverly leveraged its family, friends, and accomplices to engage in large-scale and highly sophisticated money laundering through various methods. These included using a trust service company for ongoing money laundering and a seemingly legitimate import and trade business to conduct loan fraud.
Chief Superintendent Kwan King-pan of the Organized Crime and Triad Bureau stated that the syndicate leader had no assets or bank accounts in his name, and did not declare any income or pay taxes. However, he entrusted his family, friends, and protégés with safekeeping and money laundering, thereby acquiring and controlling assets including luxury properties purchased for over HK$100 million, luxury cars, foreign liquor, watches, and illicit funds from other banking transactions and financial networks.
The police stated that traditional investigative methods alone were insufficient to effectively combat this triad organization. Therefore, the Organized Crime and Triad Bureau, in conjunction with the Financial Intelligence and Investigation Bureau and the Commercial Crime Bureau, formed a dedicated inter-departmental task force. Over the past two years, through in-depth intelligence gathering, reviewing and analyzing extensive bank documents and transaction records, the entire criminal network was uncovered from clues.
Police arrested the ringleader and core members, including members of the Sun Yee On.
Yesterday (29th), the police, opportunely, launched Operation Ambush, codenamed “Ambush,” conducting raids on numerous companies and personal addresses in Hong Kong, Kowloon, and the New Territories. A total of 82 individuals, 55 men and 27 women, aged between 19 and 78, were arrested on suspicion of money laundering and conspiracy to defraud.
One of the suspects was a 44-year-old man, believed to be the ringleader, who was reportedly a “Sister-in-Law.” The ring also included core members, their families, and accomplices. During the operation, police froze a total of HK$1.13 billion and seized approximately HK$8.26 million in cash and exhibits valued at over HK$7 million, including over 1,100 bottles of fine wine, numerous luxury watches, jewelry, handbags, gold jewelry, and numerous bank documents.
A syndicate established a fake trust service company to launder HK$39.6 billion in criminal proceeds over 21 months.
Police investigations revealed that the triad group established a trust service company in 2021. Between 2022 and 2024, the company’s account was used to deposit and transfer approximately HK$39.6 billion, suspected criminal proceeds. These funds were then quickly transferred to various puppet personal accounts and used to purchase virtual assets. They were even used by the trust company’s directors for daily expenses, such as credit card balances and the purchase of designer handbags, watches, and jewelry.
The trust service company initially opened multiple bank accounts at various banks in Hong Kong. During this period, assets totaling HK$19.8 billion of unidentified origin were transferred into the trust service company’s bank accounts. Most of the funds were deposited into the accounts of a trust services company through a shell company. The shell company itself had no real business and no significant revenue.
No actual trust services, using a license to conceal large deposits and transfers
When the bank inquired about the company’s suspicious large-scale transfers, the company submitted false documents, claiming to be trust agreements signed with clients, to prove the transactions were legitimate. However, police discovered that the trust agreements were riddled with errors, including incorrect ID numbers and dates. Therefore, police have reason to believe that the trust services company, without any actual trust services, staged a fraudulent scheme to gain the bank’s trust, conduct large-scale transactions between accounts, and use the trust license to conceal the handling of large amounts of funds of unknown origin.
Police say this is the largest money laundering case ever uncovered using a trust services company as a cover.
Chief Superintendent Cheng Lai-kei of the Financial Intelligence and Investigation Bureau (FIIB) announced that police raided a trust services company in Kowloon Bay yesterday (the 29th) and arrested 10 individuals, including eight men and two women aged between 27 and 59, on suspicion of conspiracy to launder money. They were directors and staff of a trust center. One of the directors was also the company’s compliance officer and money laundering reporting officer, representing the mastermind of the syndicate. This meant he had a statutory duty to report money laundering cases, yet knowingly violated the law and was arrested. Police seized approximately HK$1.1 million in cash and a large number of documents.
Police stated that this case marks the first time they have uncovered a money laundering case disguised as a trust services company, and it is also the largest money laundering case ever investigated by the police involving a trust services company. Funds deposited and transferred from the company totaled nearly HK$40 billion. These illegal activities have severely damaged the professional image of Hong Kong’s trust services industry. Police believe they have dismantled the money laundering syndicate, severely damaging the triad’s revenue stream.
A syndicate controlled three companies and fabricated $1.06 billion in import trade and bank loans.
In addition, police uncovered that the syndicate used a local trading company to purportedly conduct overseas transactions with two other local and overseas companies. Between 2021 and 2023, they applied for 69 import trade loans from local banks, defrauding US$135 million (approximately HK$1.06 billion). During the loan applications, the individuals provided banks with suspected false documents, such as forged invoices and bills of lading, to fabricate the transactions. In reality, all three companies were controlled by the syndicate’s mastermind and their relatives, and the transactions did not exist.
Chief Superintendent Wong Chun-yu of the Commercial Crime Bureau stated that according to police investigations, after the banks approved the loans, the funds were not used for the actual delivery of goods. Instead, they were transferred to other accounts of the three companies in Hong Kong banks within a short period of time. Some of the fraudulently obtained funds were used to repay other debts of the companies, while others were used by the group members for their personal lavish lifestyles, such as buying and selling luxury goods, investments, and mortgage payments.
Police have temporarily arrested 10 individuals in connection with the case, including six men and four women, aged between 31 and 73. The arrested individuals served as company directors, shareholders, and employees. Police stated that although some of the loans obtained by the companies in the case through fraudulent means have been fully repaid, and the banks ultimately suffered no losses, such activities could damage Hong Kong’s reputation as a global financial center.
Police believe they have successfully disrupted and dismantled a triad syndicate. Police reiterate that any illegal, violent, or triad activities will be strictly prohibited. Police will continue to use intelligence-led methods to vigorously combat related criminal activities.
