Twelve swindlers have been jailed up to six years by the District Court for duping new recruits into investing in watches and earrings.

The defendants set up four trading companies in Wan Chai and placed advertisements on newspapers to recruit junior staff who were enticed to buy the jewellery at unreasonably high prices.

The defendants alleged the goods were famous brands in high demand overseas. After the victims paid they were sacked for no reason. The companies then moved. Thirty victims lost $7.4 million in total.

Police arrested the 12 men, aged 22 to 44, since March 2004, and charged them with conspiracy to defraud and conspiracy to launder money.

The defendants were convicted of the charge yesterday and sentenced today.