The Police has raided more than a dozen locations & arrested eight across Hong Kong as part of a 3.55 billion Hong Kong dollars fraud probe. The raids at two listed companies & 18 banks occurred yesterday.

Five men & three persons were nabbed, though charges have not been filed. An initial investigation showed a number of senior staff at the two companies had falsified accounting records last year to secure various bank loans amounting to Hong Kong dollars $1 billion.

Loans were later invested netting hundreds of millions of dollars in returns that were never booked on the company’s balance sheet.