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China jails two for life for $2.4 bn pyramid scam

AFP  |  Beijing 

A Chinese has jailed two people for life for their roles in a 15.6 billion ($2.4 billion) which swindled some 200,000 investors, said today.

A in the eastern city of on Monday convicted and of fraud, Xinhua agency said.

Hang set up Longyan E- Ltd. in January 2015 and worked with another company owned by Cai to cheat the investors out of 15.6 billion yuan, the said.

They promised annual returns of more than 250 percent if investors became members by paying 4,000 each and then bought

The pair also set up a third firm to sell and promised that the company would go public in the United States, Xinhua said.

Ding Wenping, of Longyan E- commerce, and Sun Shijia, its president, were jailed for 12 and 10 years respectively.

Seventeen others were given sentences of up to nine years.

The court also ordered the 21 defendants to return 5.7 billion to more than 170,000 investors.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 09 2018. 20:00 IST