560 busted for pyramid schemes
Print Edition
Police on the Chinese mainland have detained 560 people involved in pyramid schemes during a special crackdown that started since the beginning of June, the Ministry of Public Security revealed yesterday.
The ministry said it cracked 212 pyramid scheme cases and destroyed 1,625 dens of such illegal business during the crackdown.
The police act was jointly initiated by 12 departments including the ministry and the State Administration for Industry and Commerce.
In the latest case, police on the Chinese mainland and Taiwan jointly detained 74 Taiwanese for organizing pyramid schemes and entrapping others into the illegal business.
Thirty-three suspects were seized in south China’s Guangxi Zhuang Autonomous Region by local police and 41 others were captured in Taiwan by the island’s law enforcement authorities, the ministry said yesterday.
Since the beginning of 2011, a pyramid selling ring invited Taiwan residents to Guangxi for travel, business surveys and housing investments and then influenced them to invest in pyramid sales on the mainland, according to a ministry statement.
The pyramid scheme-selling ring, with more than 1,000 members from Taiwan, arranged for them to live together and brainwashed them by giving various lectures, the statement said.
Police in Guangxi detected the pyramid selling activities in March and reported them to the Taiwan police authorities, according to the statement.
The ring was busted under the joint efforts of police from both sides several days ago, the statement said, without giving the exact date.
The ministry vowed to further cooperate with Taiwan’s law enforcement authorities to crack down on pyramid schemes to ensure the interests of people on both sides.
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