Three men, aged 29 to 39, have been jailed for up to three and a half years for their involvement in a pyramid scheme fraud. About $60 million has also been frozen by the Court of First Instance.

The court heard the three defendants were the directors and staff of a mail order company involved in the fraud. The company offered two types of investment in which participants could receive a rebate in introducing any new client. The second plan required participants to invest $11,000 initially and they were promised a net cash rebate of $141,000 over a 14-month period.

In August 2000, Police received reports suspecting the fraudulent nature of the company. Investigations found the company had no other business, so it was impossible to meet its liabilities solely on the sale of the investment plans.

In mid-December 2000, officers raided the company's branch offices in eight locations in Mong Kok and North Point, arresting the three men. Further investigations led to the arrest of a 33-year-old man two weeks later.

In January 2001, the first three men were charged with conspiracy to defraud while the fourth was charged with conspiracy to defraud in May 2002. The four appeared for trial last October. The Court of First Instance convicted the first three and acquitted the fourth on December 14, before meting out the sentences today.