Police bust fraud syndicate over $25mn loan scheme

Police arrested 12 people after dismantling a fraud syndicate suspected of setting up shell companies to scam the government's 80 percent loan guarantee scheme, involving 25 million dollars.

Among the evidence seized were bank loan documents and bank cards.

The case came to light in June last year after a bank reported the suspected fraud.

Investigations found the group recruited individuals online to set up shell companies, offering payments ranging from several thousand to tens of thousands of dollars.

A total of 14 applications were involved, amounting to 25 million dollars.

Over the past two days, police arrested 10 men and 2 women, including the alleged ringleader and a bank employee responsible for processing applications.