Police have arrested four people in Sheung Shui and Yuen Long for conspiracy to defraud job seekers.
The three men and a woman, aged 19 to 49, are believed to have recruited job seekers through newspaper advertisements, persuading them to purchase mobile phones under contract in their own names from various providers in return for cash rewards and jobs.
However, the victims were left liable for outstanding payments to the providers, and the job opportunities never materialised.
Police arrested the four and seized 48 phones, SIM cards, application forms and cash. They remain in custody for questioning.
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