Po­lice tuck in Ponzi sus­pects na­tion­wide

Shanghai Daily - - METRO - Chen Huizhi

MORE than 20 sus­pects have been de­tained for al­legedly or­ga­niz­ing a Ponzi scheme in which over 100 bil­lion yuan (US$14 bil­lion) was col­lected, Shang­hai po­lice said yes­ter­day.

The gang al­legedly op­er­ated the scheme through na­tion­wide stores for la­tex bed­ding called “Data Ty­coon.”

In­stead of

sell­ing

la­tex prod­ucts, they sold fi­nan­cial prod­ucts to in­vestors, who were en­cour­aged to draw in other in­vestors, po­lice said.

Po­lice in Jin­shan District started their in­ves­ti­ga­tion in Fe­bru­ary this year af­ter a dis­ap­pointed in­vestor re­ported the case.

The man, sur­named Liu, said he had in­vested about 23,000 yuan in 2017 and re­ceived no re­turns.

In­vestors like Liu be­came mem­bers of the “DT Group” and had ac­counts on the com­pany’s web­site.

More than 1 mil­lion mem­ber ac­counts were opened on the web­site from June 2016 to Au­gust this year, po­lice said.

They ini­tially in­vested US$125 to US$12,500 to be­come mem­bers, ac­cord­ing to po­lice.

The “DT Group” is al­legedly a com­pany reg­is­tered in Thai­land, with branch com­pa­nies run­ning its In­ter­net plat­form and sales reg­is­tered in China’s Wuhan and Shen­zhen.

Two main sus­pects are still at large in a for­eign coun­try, po­lice con­firmed.

The other sus­pects were caught in dif­fer­ent parts of the coun­try in Au­gust.

Po­lice then froze bank ac­counts hold­ing more than 18 mil­lion yuan.

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