Tags: ezubao | financial | fraud | ponzi scheme | arrests

Ezubao Financial Fraud Case: 21 Arrests in Alleged $7.6B Ponzi Scheme

Image: Ezubao Financial Fraud Case: 21 Arrests in Alleged $7.6B Ponzi Scheme
In this Jan. 1, 2016 file photo, Chinese policemen watch as depositors from Ezubao gather outside the State Bureau for Letters and Calls Reception Division office in Beijing. (AP Photo/Mark Schiefelbein, File)

By    |   Monday, 01 Feb 2016 12:03 PM

An Ezubao financial fraud investigation has resulted in the arrests of 21 people reportedly involved in the operation of the peer-to-peer (P2P) lender's alleged online scam that took in some 50 billion yuan ($7.6 billion) from about 900,000 investors, Reuters reported.

Ezubao was a Ponzi scheme, an official Xinhua news agency report said, and more than 95 percent of the projects on the online financing platform were fake.

Among those arrested were Ding Ning, the chairman of Yucheng Group, which launched Ezubao in July 2014.

It was not possible to reach Ezubao officials for comment and it was not clear if Ding had legal representation.

Ezubao's website has been shut down and it appeared Yucheng Group's Beijing office had been closed when Reuters reporters visited before Monday's Xinhua report.

Chinese police said they had sealed, frozen and seized the assets of Ezubao and its linked companies as part of investigations into China's largest P2P online platform by lending figures.

The Ezubao case has underscored the risks created by China's fast-growing $2.6 trillion wealth management product industry. Many products are sold through loosely regulated channels, including online financial investment platforms and privately run exchanges.

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An Ezubao financial fraud investigation has resulted in the arrests of 21 people reportedly involved in the operation of the peer-to-peer (P2P) lender's alleged online scam that took in some 50 billion yuan ($7.6 billion) from about 900,000 investors, Reuters reported.
ezubao, financial, fraud, ponzi scheme, arrests
193
2016-03-01
Monday, 01 Feb 2016 12:03 PM
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