Smash Ponzi racket tar­get­ing home­buy­ers

China Daily (Hong Kong) - - COMMENT - A NEW TYPE

of mul­ti­level in­vest­ment scheme has emerged in Yan­jiao, a town in He­bei province to the south­east of Bei­jing. Slightly dif­fer­ent from pyra­mid schemes, the new one is a shell com­pany en­cour­ag­ing house­holds to in­vest 49,800 yuan ($7,500) for promised re­turns of up to 4.5 mil­lion yuan. Such an of­fer could eas­ily en­tice peo­ple into a trap. The Bei­jing News com­mented on Mon­day:

Al­though the new mul­ti­level in­vest­ment scheme claims to be dif­fer­ent from Ponzi schemes, it is es­sen­tially no dif­fer­ent from the ploys used by fraud­sters ear­lier to cheat peo­ple out of their hard­earned money.

Yan­jiao is about 33 kilo­me­ters from the Cen­tral Busi­ness District of Bei­jing and an im­por­tant point on the de­vel­op­ment plan for Bei­jing-Tian­jin-He­bei in­te­grated area. So such pyra­mid schemes will not only un­der­mine the so­cial or­der of Yan­jiao, but can also af­fect the se­cu­rity of Bei­jing.

Many on­line posts say that since in­nu­mer­able com­muters pass through Yan­jiao every day to reach Bei­jing or on their way back home, they could fall prey to such schemes thanks to the en­tic­ing pro­mo­tions.

Me­dia re­ports say it’s the con­ve­nient lo­ca­tion of Yan­jiao — next to Bei­jing and with low rent — that has drawn the fraud­sters to the area. Po­lice, ac­cord­ing to re­ports, have taken ac­tion to clear the pyra­mid schemes and ar­rest the op­er­a­tors. In fact, po­lice claim to have ar­rested the main lead­ers.

But sur­pris­ingly the Ponzi scheme still seems to be run­ning. More con­certed ac­tion is needed to root out this fraud­u­lent scheme and pro­tect peo­ple from harm.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.