about us | editors | contact

Chinese officials arrest 21 people over $7.6bn 'scam'

BBC Monday, February 1st 2016 02:08 PM

Chinese authorities have arrested 21 people involved in an online finance scheme which is suspected of defrauding 900,000 investors of about 50bn yuan ($7.6bn; £5.3bn).
The 21 people worked for Ezubao, a peer-to-peer lender widely described in Chinese state media as a Ponzi scheme.
Ezubao is believed to be China's largest such online financing business.
State media said investigations had found more than 95% of the investment offerings on the site were fake.
Chinese television broadcast apparent confessions by two former employees of the company, that was based in Anhui province.
Ezubao was launched in 2014 by Ding Ning, the chairman of holding firm Yucheng Group. He was among those arrested, reports said.
China's growing middle class has increasingly been attracted to online investment schemes as people seek to quickly increase their wealth.
But authorities have been struggling to regulate the wealth management industry, estimated to be worth more than $2.5tn.
A Ponzi scheme is much like a pyramid scheme and is viewed as a fraudulent investment operation that offers unusually high returns on short term investments. Some of that money pays fake returns to other investors.
They are named after Boston fraudster Charles Ponzi who set up schemes in the US in the 1920s.

    Modern Yemen was established after a merge of two sovereign states- the Northern Yemen Arab Republic (North Yemen) and People Democratic Republic of Yemen
There is a lot more to make one confident about the Arab world than there is to cause despair. This may be a surprise, as every day we have to cope with more grim news; from Syria and Libya where
Extremism, especially violent extremism, is a scourge on the planet. Those who promote extremist ideologies or sponsor acts of violence in the name of Islam cannot be condoned or supported by anyone
The port of the most charming and enchanting city in Yemen- Aden- is one of the oldest and most ancient ports in the country. Its importance and strategic location contributed to its fame that can be
  Alas! I begin my speech with this word.,it reflects a deep sorrow in my heart. Innocent people were killed without remorse just because they wanted to help us! This is a Crime!! What happened
Top news
Follow us
All rights reserved [Yemen News Network] ©2018