China jails 26 over RM32b Ponzi scheme

BEIJING: Two senior executives of a collapsed peer-to-peer lender were sentenced to life in prison and 24 others punished over what has been called China’s biggest-ever Ponzi scheme, state media reported yesterday.

The company, Ezubao, reportedly swindled more than 900,000 investors out of 50 billion yuan (RM32 billion), mainly between 2014 and 2015.

The company was alleged to have fabricated most of the projects on its website and paid old debts with money from new investors.

Ding Ning, head of Ezubao’s parent company Yucheng Holdings, was sentenced by a Beijing court to life in prison for charges ranging from fraudulent fundraising to illegal possession of a gun.

Another top corporate official, Ding Dian, also received a life sentence.

The court handed sentences to other defendants ranging from three to 15 years in prison, and levied fines including a 1.9 billion yuan penalty on Yucheng Holdings.

Ding Ning was said by local media to have given his company president a pink diamond ring and luxury villa in Singapore, while dressing his secretaries in designer brands such as Louis Vuitton and Gucci. – AFP