China prosecutes 26 over US$7.6 billion Ponzi scheme
CHINA will prosecute 26 people linked to a peer-to-peer lender for fraud and illegal fundraising, state media said, in a case labelled a Ponzi scheme for allegedly bilking investors of US$7.6 billion.
Police have handed over the case involving P2P lender Ezubao to prosecutors, the official Xinhua news agency said on August 16.
Authorities charged 11 people, including top executives of Ezubao’s parent company Yucheng, chair Ding Ning and president Zhang Min, of fraud while another 15 are accused of illegally obtaining investors’ savings, the Beijing People’s Procuratorate said on its website.
In a televised confession shown in February after suspects were arrested, Mr Zhang said Ezubao was “a typical Ponzi scheme”. Rights groups condemn such practices as prejudicing a fair trial. –