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Woman charged with fraud in 150m yuan Ponzi scheme

A Shanghai woman was charged with fraud in a 150-million-yuan (US$25 million) Ponzi scheme, local prosecutors said yesterday.

Shan Yuanyuan, president of Shanghai Sanco Trade Co Ltd, claimed she was able to get cars and Apple products at cheaper prices and sell them at a bargain price.

Investigators found 245 people were duped into the scheme between July 2010 and last May and lost more than 150 million yuan.

Prosecutors said Shan actually had bought cars and Apple products at market prices and sold them at much lower prices. Those who benefited from the scheme would introduce more friends to join in and she used their advance payment to cover the price difference.

Prosecutors said some buyers even bought large quantities to make profits and poured millions of yuan into Shan's Ponzi scheme.

With hundreds of people involved in the scheme, the money gap kept growing until Shan could no longer to get them cars and Apple products.

Shan was detained last May after angry clients stormed her office in Jinqiao, Pudong New Area and helped themselves to about 1 million yuan worth of Apple products to cover losses.


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