Introduction
Hong Kong’s sophisticated scams—investment fraud, romance scams, and corporate deception—demand world-class legal action. If you’ve suffered losses, immediate, decisive action is your greatest weapon. This guide reveals how our team of lawyers leverages urgent injunctions, Norwich Pharmacal Orders, and cross-border enforcement to recover your assets.
1. Act in Minutes, Not Days: Critical First Steps
Time is of the essence.
Key Immediate Steps
- Hong Kong Police – Report to the Hong Kong Police with transaction proofs (dates, amounts, fraudster’s bank details, correspondence and background information about the fraud).
- Alert JFIU – File a suspicious transaction report with the Joint Financial Intelligence Unit (“JFIU”).
- Notify Bank – Notify your bank immediately if fraudulent transfers occurred.
- Legal Advice – Seek urgent legal advice on whether you should apply for a court injunction to freeze funds.
If the Hong Kong Police assess that criminal proceeds are involved, and the funds remain in a Hong Kong bank account, the Hong Kong Police may issue a Letter of No Consent (the “Letter”) to temporarily freeze the scammer’s account. This gives the victim time to commence civil action against the fraudster if the bank account can be frozen before the funds are withdrawn. However, unlike court injunctions, the Hong Kong Police may withdraw the Letter at any time.
2. Identifying the Fraudster – Norwich Pharmacal Order (“NPO”)
To sue the fraudster, you must first identify them. This is often the most challenging part if you only have a bank account number.
Our team can compel banks or payment processors to disclose the identities of the account holder via NPOs.
To obtain an NPO, one would need to satisfy the following requirements:
Requirement | Description |
Wrongdoing | A clear case of fraud or serious misconduct |
Third-party involvement | The respondent (e.g., bank) is innocently mixed up in the wrongdoing |
Necessity | Disclosure is essential to identify or pursue the fraudster |
No alternative | The information is not available from other sources |
Proportionality | The request must be specific and not excessive (i.e., no “fishing expeditions”) |
3. Freeze Assets Globally: Urgent Injunctions
Once the fraudster has been identified, you should apply for an injunction to stop further dissipation of your funds. An injunction is an urgent application made to the court. In most cases, once instructions are given to a solicitor, the injunction can be obtained within one to two days.
Mareva Injunction
A Mareva Injunction restrains the defendant from disposing of assets before a judgment is made. It’ is used to preserve the status quo while litigation is ongoing.
To succeed, the applicant must show:
- A good arguable case on the merits;
- A real risk that the defendant will dissipate assets;
- That the balance of convenience favors granting the order.
Mareva injunctions can apply to assets in Hong Kong or worldwide, depending on the facts.
Proprietary Injunction
If the victim claims ownership over specific misappropriated funds or assets, a Proprietary Injunction may be appropriate. It differs from Mareva Injunction in that it protects property rights, not just enforceability of debt.
To obtain this injunction, the applicant must show:
- A serious issue to be tried over the ownership of the asset;
- That damages alone would not suffice; and
- The balance of convenience supports granting the relief.
4. YTL LLP’s 4-Step Recovery System
Step 1: Apply for an NPO
- File an Originating Summons with an affidavit explaining the fraud and necessity for disclosure
- Include a gagging order to prevent tipping off the fraudster
Step 2: Apply for Injunctions
- Once the fraudster is identified, consider applying for:
- Mareva Injunction; or
- Proprietary Injunction.
Step 3: Litigation
- Commence legal proceedings against the fraudster by serving a Writ of Summons
- If the fraudster does not file Acknowledge of Service or does not contest the claim, the victim may apply for default judgment.
Step 4: Enforcement
- File an Originating Summons supported by affidavit evidence showing:
- Judgment details
- Amount due
- Identity of the garnishee (e.g., bank)
- Serve the Garnishee Order Nisi on both the garnishee and the defendant
- If no objections are raised, obtain a Garnishee Order Absolute, requiring the bank to pay funds to you
5. How YTL LLP Can Help You Recover Your Money
Pre-litigation:
- Preparing and filing complaints and JFIU reports
- Liaising with banks and law enforcement agencies
- Conducting background investigations to trace funds
- Advising on Mareva Injunctions, Proprietary Injunctions, and Norwich Pharmacal Orders
- Coordinating with other victims and regulatory bodies
During Litigation:
- Advising on the most effective strategy for pursuing recovery proceedings
- Preparing court documents and affidavit
- Applying for injunctions and disclosure orders
- Co-ordinating with banks to maintain asset freezes
Post-Judgment
- Worldwide enforcement (Garnishee Orders, seizures)
- Insolvency proceedings against fraudster
6. Recover Your Money Now
Recovering stolen funds in Hong Kong is achievable if one acts quickly and decisively.
Contact our team immediate assistance.
Ariel Kong, Associate
arielkong@hkytl.com; +852 3468 7358
Janice Yik, Of Counsel
janiceyik@hkytl.com; +852 3468 7833
This article is introductory in nature. Its content is current at the date of publication. It does not constitute legal advice and should not be relied upon as such. You should always obtain legal advice based on your specific circumstances before taking any action relating to matters covered by this article. Some information may have been obtained from external sources, and we cannot guarantee the accuracy or currency of any such information
