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China court 'jails 24 people over $1.5bn financial scam' | China court 'jails 24 people over $1.5bn financial scam' |
(about 2 hours later) | |
A court in China has sentenced 24 people to jail for raising more than 9.9bn yuan ($1.5bn; £1.07bn) through a scam, according to state media. | A court in China has sentenced 24 people to jail for raising more than 9.9bn yuan ($1.5bn; £1.07bn) through a scam, according to state media. |
The scam saw hundreds of thousands of elderly people cheated of their money. | |
One man has been sentenced to life in prison, while 23 others have been given sentences of up to 14 years, state-owned agency Xinhua said. | One man has been sentenced to life in prison, while 23 others have been given sentences of up to 14 years, state-owned agency Xinhua said. |
The scam saw members of the public buy membership cards or fake loans that offered up to 47% returns. | The scam saw members of the public buy membership cards or fake loans that offered up to 47% returns. |
Some 230,000 investors were cheated. | Some 230,000 investors were cheated. |
The court hearing in China's Guangdong Province was attended by a number of the victims. | The court hearing in China's Guangdong Province was attended by a number of the victims. |
"Many elderly victims who put their savings into the scam burst into tears at the trial," Xinhua reported. | "Many elderly victims who put their savings into the scam burst into tears at the trial," Xinhua reported. |
"Some said they were attracted by the company's 'novel modes of financial services' and fooled by their fancy exhibitions." | "Some said they were attracted by the company's 'novel modes of financial services' and fooled by their fancy exhibitions." |
One victim said she and her husband had lost all their savings. | One victim said she and her husband had lost all their savings. |
"Their grand exhibition occupied six halls," one woman told Xinhua. "After attending it, I felt assured and decided to invest 700,000 yuan." | "Their grand exhibition occupied six halls," one woman told Xinhua. "After attending it, I felt assured and decided to invest 700,000 yuan." |
The court has frozen the accounts and seized the assets of those sentenced to jail, however, there are concerns the victims of the scam will not get their money back. | The court has frozen the accounts and seized the assets of those sentenced to jail, however, there are concerns the victims of the scam will not get their money back. |
The ring leader, Jiang Hongwei, who received a life sentence, reportedly spent millions on luxury items and has "failed to disclose where other funds had gone", Xinhua said. | The ring leader, Jiang Hongwei, who received a life sentence, reportedly spent millions on luxury items and has "failed to disclose where other funds had gone", Xinhua said. |
Beijing has been cracking down on financial fraud in the country. | Beijing has been cracking down on financial fraud in the country. |
Last month, Chinese authorities arrested 21 people involved in an online finance scheme which was suspected of defrauding 900,000 investors of about 50bn yuan ($7.6bn; £5.3bn). | Last month, Chinese authorities arrested 21 people involved in an online finance scheme which was 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. | |
It had been in operation for 18 months when it was shut down by police in December. | It had been in operation for 18 months when it was shut down by police in December. |
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