26 Ponzi Scheme operators sent to jail in China over $7.6 bn fraud
Sep 12, 2017 Business 2326 By Abdulkerimu Oare
- 26 individuals including two senior executives jailed for involvement in ponzi scheme.
- China's biggest ponzi scheme ever.
- 900,000 investors participated and lost $7.6 billion between 2014 and 2015.
Two senior executives of a collapsed peer-to-peer lender were sentenced to life in prison and 24 others punished over what has been called China's biggest-ever Ponzi scheme, state
media reported Tuesday.
The company, Ezubao, reportedly swindled more than 900,000 investors out of $7.6 billion, mainly between 2014 and 2015.
The company was alleged to have fabricated most of the projects on its website and paid old debts with money from new investors.
As authorities closed in, company executives were reported to have buried financial documents in the ground near corporate headquarters in the eastern province of Anhui. It took police 20 hours to dig them out with two excavators.