Twelve people have been arrested in connection with a pyramid selling scheme. Police raided a fraudulent company in Sai Yee Street, Mong Kok, yesterday seizing five computers, cash and records of scheme members and the company's accounts.

Four men and eight women, aged 17 to 50, were apprehended for conspiracy to defraud, including the 36-year-old male company director. Some cash and valuables, including gold watches, were also seized at his Aberdeen home.

Police received a complaint in December against the company for suspected pyramid selling, and investigations found participants were told to pay about $7,200 to join the scheme and promised a net profit of $357,700 after 14 months. It is believed 450 locals and Mainlanders have joined since September, involving about $9.7 million.

Anyone who has fallen victim to the cash-planting scheme, or who has information to offer, should contact Police on 2860 5012. Those arrested have been detained for questioning.