Police uncover cross-border coffee investment scheme involving MOP97 million

[Photo: Yuki Lei]

Macau and Hong Kong police have busted a cross-border coffee investment fraud syndicate, with Macau arresting two women and Hong Kong recording 225 cases involving at least MOP97 million.

The Judiciary Police (PJ) and the Hong Kong Police Force held separate press conferences yesterday to announce the results of a coordinated operation that dismantled a cross-border fraud syndicate operating under the guise of a coffee investment scheme.

Police said the operation resulted in the arrest of two local women, identified as the Macau district manager and the shop’s license holder.

The pair allegedly opened a coffee shop in the Avenida Horta e Costa area last November, using free coffee tastings as a lure to attract customers before pitching virtual coffee and artificial intelligence (AI) investment schemes that promised daily returns of 0.67% and annual returns of up to 222%.

The operation allegedly functioned as a pyramid scheme, encouraging victims to recruit others in exchange for commissions. Victims were required to hand over cash to staff, who converted it into cryptocurrency and deposited it into a mobile application. However, they were later unable to withdraw funds, and the coffee shop abruptly closed down.

According to the press conference, the PJ began receiving reports from multiple Macau residents on July 29. Investigations revealed a close link between the local shop and a Hong Kong-based coffee chain of the same name, leading to a joint operation with the Hong Kong Commercial Crime Bureau.

On Saturday morning, with the assistance of the Public Security Police Force (PSP), PJ officers intercepted one suspect at the Hong Kong-Zhuhai-Macau Bridge checkpoint as she attempted to leave Macau, while the other suspect was apprehended in the central district later that same day. Items seized during the operation included case-related documents, four mobile phones, and cash amounting to MOP27,000 and HKD45,500.

Both suspects denied the charges, claiming they had merely followed instructions from their superior in operating the coffee shop and were unaware of any fraudulent activities. However, police stressed that evidence gathered – including documents, mobile phone communications and victim testimonies – strongly suggested that both individuals were fully aware of the scheme’s fraudulent nature and had actively participated in promoting and recruiting investors.

The PJ said the two suspects had been instructed by their superior to open the coffee shop in Macau, with operating funds provided through cryptocurrency.

They regularly reported business performance to their superior, with compensation determined based on performance results. The superior later went silent, the mobile application ceased operation, and the shop was forced to close.

Authorities believe at least 40 Macau residents have fallen victim to the scheme, with nine of them having already filed reports. Victims identified so far are primarily middle-aged or elderly residents – described as “casual investors” with disposable savings. Police have not ruled out the possibility of additional elderly victims.

The nine complainants reported losses ranging from MOP52,000 to MOP1.55 million, totalling approximately MOP3.6 million.

The two suspects have been transferred to the Public Prosecutions Office (MP) on suspicion of fraud involving a large amount of money and pyramid scheme offences.