Fraud on a Chinese Scale: 900,000 Investors Deprived of $7.6 bln
Posted: Mon Feb 01, 2016 5:06 pm
Chinese authorities have busted a major fraud scheme targeting a number of investors. Almost 900,000 clients of online peer-to-peer lending platform Ezubao (E Rent Treasure) have turned out to be scammed out of their money. The pyramid scheme has been operating across 31 provinces and has managed to illegally collect over over $7.6 billion (¥50 billion).
The owner of Ezubao is former chairman of Yungcheng International Group, Ding Ning. He and twenty of his associates have been arrested by the Beijing prosecuting department. The average amount every investor in the scheme lost comes up to over $8,400, which is about the average ... (read more)