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56 arrested in China pyramid scheme

Xinhua, October 20, 2015 Adjust font size:

Fifty-six suspects were arrested as police in central China announced Tuesday they have broken up a pyramid scheme with 66,000 members.

The gang leader surnamed Sun founded two companies in the name of his father and mother-in-law in November 2014 in Zhengzhou, capital of Henan Province and falsely claimed to be part of China Unicom.

Sun and others used a server in Hong Kong and carried out false propaganda and set up a platform for gang members to get returns, said the Public Security Bureau of Yongzhou City, Hunan Province.

Seven suspects were arrested in April by police in Xintian County, Yongzhou. Major organizers were arrested in June in Guangxi, Henan and Sichuan. Sun handed himself in to police.

The gang asked people to pay 9,999 yuan (1,600 U.S. dollars) each to become members, coaxing them to attract others to join through rewards and promotions, according to police investigation.

Some 66,000 people from 20 provinces or regions became members of the ring with a total fund of 660 million yuan. Police have frozen 103 million of the gang's assets. Endit