China arrests 21over $7.6 billion Ponzi scheme

China arrests 21 Ezubo-linked suspects over $7.6 billion Ponzi scheme

BEIJING — Chinese authorities accused an online financing platform of bilking mostly small investors of more than 50 billion yuan ($7.6 billion) through a Ponzi scheme — the latest allegation of fraud against a loosely regulated part of China’s financial-products market.

The charges, reported by the government’s Xinhua News Agency on Monday, are the first official allegations against Ezubo Ltd., whose implosion last year touched off demonstrations in Beijing and several other cities. Part of the boom in peer-to-peer platforms — which connect lenders and borrowers — Ezubo had grown quickly pitching high-yielding investments as the economy slowed.

Police have arrested 21 suspects linked to Ezubo and its parent, Yucheng International Holdings Group Ltd., on charges including illegally soliciting funds from the public and fraud, the Xinhua report said, adding that prosecutors are seeking restitution for 900,000 investors.


The report, which cited Beijing police, said Ezubo and Yucheng had lured investors with promises of high-interest payouts from leasing projects. It quoted company officials saying 95% of the advertised investment projects were falsified, and calling Ezubo “a downright Ponzi scheme.”

Ezubo’s collapse would be one of China’s largest investment frauds in recent years. The company rose as investors sought alternatives to the sagging real-estate market and volatile stock market.

if found guilty China executes people fuh dat crime.

deh dont play with that! : : :

The question now is: Where is the money?;p I guess more and more scams like this will happen since the economy is unstable right now. I don't know if pyramiding schemes are almost like this but I find that such schemes pop up suddenly. Then all of a sudden they're gone. Almost like just getting money then leaving all the recruits behind.

Well if they had all that money, they would have run. You never know with China why they do certain things. Maybe someone in the Communist party didn't like these fellows.

I am pleased with this development. New Ponzi schemes pop up every day on the net. When they may have reached their expected quota of funds, the sites just disappear and the principals reappear using, different information, to continue robbing people. Sometimes you may be advised through forums they had previously scammed subscribers.
I have always wondered why there is so much prevalence of this type of activity with no types of sanctions being applied.
Therefore, I say hats off to the Chinese and I hope there will be more effort globally to bring these scammers to book.

run where ::confused:: ::confused:: ::confused::

China is always arresting businessmen and bankers for their frauds and when found guilty executes them.

where are they going to run..to Taiwan ::confused::

I don't think running is much of an option. you take your chances..you know the price of being caught is your life :

run to TO

Well, here we go again.  I would always like to think that one time is enough for people to learn how to spot these thing and get rid of them before they have dire consequences, but it sounds like it is too late here.  Hopefully this will not have ripples throughout the global economy like the last scare we saw, but I guess we will have to wait and see.

Marco Polo brought Chinese NOODLES to ITALY and it is now world famous Spaghetti !

Whom took Ponzi to China or rather who is Ezubo ???   

nah.  China can pull them outta Toronto!  too much to lose if Canada say no.  same with just about everywhere else ::LOL:: ::LOL::