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Crime of pyramid scheme making a comeback in China
By Pan Zheng |
August 12, 2011, Friday
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Online Edition
Online Edition
THOUSANDS of people from all over China flocked to Laibin, a small city in southern Guangxi Zhuang Autonomous Region, to participate in pyramid schemes and their business venues were deliberately close to police stations and the city hall, Beijing News reported today.
The China Anti-Pyramid Selling Association said it had received reports from 30 provinces and autonomous regions. In the Inner Mongolia city of Ulanqab alone, more than 2,000 people were locked in pyramid schemes, including farmers, businessmen, retirees, teachers and public servants. Some even committed suicide after losing all the money.
Most participants didn't know much about the pyramid scheme. They were told that they could earn 3.8 million yuan (US$594,000) back with a tiny investment of only 3,800 yuan.
The newspaper report said the Laibin Park next to a police station and the square in front of the city hall were gathering places for pyramid sellers to do business because they believed it could convince new comers that their business was illegal.
A local taxi driver told the newspaper that Laibin City government did not take any action to crack down on the practice of pyramid scheme.
The China Anti-Pyramid Selling Association said it had received reports from 30 provinces and autonomous regions. In the Inner Mongolia city of Ulanqab alone, more than 2,000 people were locked in pyramid schemes, including farmers, businessmen, retirees, teachers and public servants. Some even committed suicide after losing all the money.
Most participants didn't know much about the pyramid scheme. They were told that they could earn 3.8 million yuan (US$594,000) back with a tiny investment of only 3,800 yuan.
The newspaper report said the Laibin Park next to a police station and the square in front of the city hall were gathering places for pyramid sellers to do business because they believed it could convince new comers that their business was illegal.
A local taxi driver told the newspaper that Laibin City government did not take any action to crack down on the practice of pyramid scheme.
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