China police bust $625m pyramid scheme

NANNING - Police in South China's Guangxi Zhuang autonomous region have arrested 55 suspects in a 4.3-billion-yuan ($625 million) pyramid scheme.

A total of 38,800 people participated in the scam that was in the disguise of beauty products selling, according to the Yulin municipal public security bureau.

In late 2017, local police launched an investigation into a company named Banmeila which claimed its sales agents could earn 500,000 yuan to 5 million yuan a year.

After more than half-an-year investigation, police found that the firm often established new entities to evade government supervision and opened multiple accounts in others' names to transfer funds.

In October 2018, police launched raids in the cities of Guangzhou, Guilin, Nanning and Yulin, capturing 55 major members of the pyramid selling group and seizing more than 700 million yuan worth of funds and assets.

Of all, police seized 13 luxury cars, sealed up 211 houses, and froze 405 million yuan in funds and insurance and wealth management products.