DCHL still in operation despite bust in Zhongshan, say former members

The operations of a controversial Hong Kong-based multilevel-marketing firm in Zhongshan, Guangdong, appear to be continuing despite police claims that they had cracked down on the branch, former members say.

The company, Digital Crown Holdings (DCHL), merely changed the name of its operation there, they allege.

"The Zhongshan police only arrested three DCHL team leaders," Li Huidong, a former product distributor based in that city, told the Post. "Many distributors have transferred to a new company named Sibellac Holdings to continue their business.

"The operations and system of Sibellac are exactly the same as DCHL's. Distributors still take new members to Hong Kong for brainwashing classes and contract signing, but now they hide in flats and offices in Causeway Bay and Mong Kok or even in Tsuen Wan and Fo Tan."

Li, a native of Ningxiang county, Hunan , said DCHL was the target of a series of crackdowns across the mainland, including in his hometown. "Banners declaring 'DCHL is an illegal pyramid-scheme firm' are hung everywhere in Zhongshan. That is why their distributors use another name to carry on the work."

At DCHL's centre in Causeway Bay, the company is still selling products and conducting training classes. Its operations are legal under Hong Kong law.