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Journalists and editor-in-chief of biz website detained over extortion scam
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EIGHT suspects including the editor-in-chief of a business and financial news website have been detained by Shanghai police for allegedly extorting money from companies by posting negative reports, People's Daily reported yesterday.
The editor-in-chief, surnamed Liu, deputy editor surnamed Zhou and several employees of 21cbn.com were accused of colluding with public relations firms since November 2013 to target famous companies, those in the process of restructuring, or ones preparing for an initial public offering, the report said, citing police.
If the companies agreed to pay a large amount of money, the website ran positive reports by exaggerating facts or by ignoring problems. The website ran negative reports about companies that refused to cooperate.
The website used the scheme to threaten companies to buy adverts or sign cooperation deals, People's Daily said.
Dozens of companies in Shanghai, Beijing, Guangdong and other cities were involved, the report said.
Police added that they are still investigating the case.
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