New | 24 jailed in China over massive US$1.5 billion Ponzi scheme that spanned 10 years, promising investors up to 47pc returns
Mastermind sentenced to life in prison over scam that lured people to buy memberships and fund non-existent loans
A Guangzhou city court has sentenced the head of one of China’s largest financial scams – which raised nearly 10 billion yuan (HK$11.86 billion) from more than 230,000 victims – to life imprisonment.
According to the News Express, 24 people were convicted of illegally raising funds for the scam during the decade to 2012.
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They had targeted mostly elderly retail investors, from more than 60 cities in 16 provinces, promising them returns of up to 47 per cent per year on their life savings.
Guangdong Bangjia Leasing set up four firms in the southern province and many branches and subsidiaries across China, luring investors to buy memberships and fund phantom loans.
The verdict follows a series of financial scams uncovered by authorities as they investigate the mainland’s loosely regulated wealth management industry.
The Guangzhou Intermediate People’s Court on Monday sentenced the main suspect in the fraud, Jiang Hongwei, to life in prison, while the others received terms ranging from three years to 14 years, Xinhua reported.
Six out of the 24 vowed to appeal, but not Jiang. The case involves four other defendants whose cases are being processed separately.
