Money back from the Dada fraud

By Leng Cheng | April 8, 2016, Friday |

Online Edition

The police have recovered more than 260 million yuan (US$40.2 million) on one of the most notorious financial scams involving Dada Group, while the court will sentence and close the case as soon as the end of 2016, according to a phone interview answered by a spokesman at Economic Crime Investigation Department of Shanghai Public Security Bureau (Shanghai ECID).

"The investigation takes time as we are looking into every single investor and company staff, as well as all the financial products getting involved," the spokesman said. "But it is clear that the company is allegedly engaged in illegal fundraising. Final refunding plan to the investors should be based on the sentence made by the court."

Dada Group, a Shanghai-based private Internet financial platform founded in 2013, have been probed by the police in December by playing Ponzi scheme to raise money from the investors amid government's tightening up on financial frauds.

Police found out that the Dada forced employees to buy its own financial products, and it needed about 40 billion yuan to achieve full payment of those products by the time it shut down.

Before Dada's probe is government's crackdown on Ezubao, one of China's most fast expanding online peer-to-peer lending platforms by amount. The company has lent 72.6 billion yuan through its so-called financial products, leaving nearly 900,000 investors lost their life-savings.

Business

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Money back from the Dada fraud

Email this to your friend