Police detain four over new pyramid scheme

Source:Xinhua Published: 2017/8/14 22:03:39

Police in South China's Hainan Province said on Monday that they had detained four suspects believed to have been involved in a pyramid scheme.

The four people are key members of a local company, Hainan Shanxinhui Culture Communication Co, which is suspected of organizing and leading a pyramid scheme, according to Hainan police on Monday.

Shanxinhui allegedly talked people into taking part in pyramid selling and cheated them out of huge amounts of property under the guise of helping the poor, local police said.

Several suspects including Zhang Tianming, the mastermind of the operation, are already facing relevant measures, including summons by force, residential surveillance, detention or arrest.

In July, police in South China's Guangdong Province seized 230 members of Shenzhen Shanxinhui, which was also founded by Zhang. Beijing police also arrested 63 members of the pyramid scheme. 

Nationwide, police investigated 2,826 pyramid scheme cases in 2016, up 19.1 percent from 2015, according to the Ministry of Public Security.

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