Scrap-metal scam foiled in Philippines
Crime syndicate was headed by two Singaporeans and a Briton
Manila: Philippine police said Tuesday they have stopped a 10-year scam in which an international syndicate shipped junk instead of scrap metal for which the buyers paid millions.
The syndicate operating from the Philippines is headed by two Singaporeans and a Briton based in Hong Kong, said Director Samuel Pagdilao of the national police investigation and detection group.
Other members of the syndicate include Filipinos, Taiwanese and Chinese, he said. The Philippines will seek Interpol help to catch the suspects in other countries once charges are filed in court.
He said the government has frozen 150 personal and corporate accounts linked to the syndicate in 20 banks. Court warrants are needed to open the accounts to determine how much they contain, a process that can take time if the account holders object.
The syndicate used shell companies with fictitious addresses and telephone numbers as well as legitimate companies to launder their money, Pagdilao said.
The scam involved luring international victims through online advertisements for scrap metal, mostly copper wire. The buyers were taken to a warehouse and shown the goods sealed in a container for shipment. After the buyers left the country, the goods were unloaded and replaced with junk such as rocks and garbage without breaking the container’s seal.
Pagdilao said one Chinese victim last year paid more than $2.4 million for 346 tonnes of scrap metal but received a shipment of concrete debris.
