TNAG-2439-FCO40-3544-Hong-Kong-crime-1992 — Page 50

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ILLEGAL MONEY LENDING

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Triad association is necessary to ensure the repayment of debts. On 5 February 1992, 28 advertisements appeared in one newspaper alone, the Morning News, which offered money lending services. If only ten persons responded to each advertisement, and all borrowed $10,000 for two weeks at an average of 650% per annum, then this equates to a profit of $700,000. Assuming this money was paid back intact by all the borrowers at the end of the fortnight and subsequently reloaned over the next one year at the same rate, then these 28 loansharks would make a profit of $36.4 million.

MAHJONG SCHOOLS AND ASSOCIATIONS

In November 1991, two Triad owned mahjong schools were the subject of major Inland Revenue Department investigations. Both had committed false accounting for the period January 1989 to October 1991. One had concealed net profits of $7.303 million, and the other $3.006 million. The money had been diverted to their brother Society in San Fransisco. Further investigations against other Triad run mahjong schools are currently underway.

MARKETS (HAWKER)

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Triads extort small amounts of money from fixed pitch and itinerant hawkers either on a daily or monthly basis. In Hong Kong there are a total of 159 markets, of which 43 or 27% are under Triad protection, paying an average monthly fee of $500. there are 50 hawkers in each market this equates to a total monthly fee of $3.975 million. The amount generated from itinerant hawkers can not be calculated.

MARKETS (WHOLESALE)

Triad influence in the wholesale fish and vegetable markets takes the form of extortion, controlling transportation, theft of produce, pre-selection of best produce and monopolizing delivery routes. Profits netted by Triads operating in the five Cheung Sha Wan markets are estimated to be approximately $990,000 per month.

CONFIDENTIAL #B

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