Guangdong police have busted an illegal fundraising gang (otherwise known as a 'swindler squad'), arresting seven individuals, reported China.org.cn.
A man surnamed Wang is the main suspect in the scam, which involved raising money online with the promise of ‘high returns’ for investors, according to the Public Security Bureau of Guangzhou.
Since February, according to police, the fraud raised approximately RMB770 million (USD116 million) by selling ‘investment opportunities’ in gold mines, healthcare and real estate.
Wang allegedly ran his gang like a pyramid-scheme, ensuring he controlled the vast majority of the fraud victims’ cash.
No word yet on what kind of punishment Wang and his cronies will face, but we hope it involves returning some (ideally all) of the money…
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