Nearly one million investors may have been fleeced in China’s latest Ponzi scheme - Quartz: "Twenty one executives from China’s largest peer-to-peer money lending platform have been arrested, on suspicion of fleecing investors of 50 billion yuan ($7.6 billion).
Police allege that the senior management of Ezubao stole that much from 900,000 investors nationwide, which would make it China’s largest-ever case of investor fraud, by both cash value and the number of victims. By number of victims, it would be the largest Ponzi scheme in the world.
At least two suspects have already confessed in police detention centers, according to a report by Xinhua (link in Chinese), China’s state-run news wire. Zhang Min, the former president of Yucheng Group, the lending scheme’s parent company, reportedly described the business as “a complete Ponzi scheme.”
Investor fraud has become a huge problem in China, where low bank deposit rates, shaky housing prices and a weak stock market have prompted citizens to look for alternate places to put their cash. Last year, financial scams raked in more than $24 billion in China, as Quartz reported earlier."
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Police allege that the senior management of Ezubao stole that much from 900,000 investors nationwide, which would make it China’s largest-ever case of investor fraud, by both cash value and the number of victims. By number of victims, it would be the largest Ponzi scheme in the world.
At least two suspects have already confessed in police detention centers, according to a report by Xinhua (link in Chinese), China’s state-run news wire. Zhang Min, the former president of Yucheng Group, the lending scheme’s parent company, reportedly described the business as “a complete Ponzi scheme.”
Investor fraud has become a huge problem in China, where low bank deposit rates, shaky housing prices and a weak stock market have prompted citizens to look for alternate places to put their cash. Last year, financial scams raked in more than $24 billion in China, as Quartz reported earlier."
'via Blog this'
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