204 suspects seized in "national assets" fraud crackdown

BEIJING -- Chinese police have held 204 suspects in a crackdown on fraud under the guise of "unfreezing national assets," the Ministry of Public Security said Tuesday.

The ministry said in a statement that 14 groups had been busted in the special crackdown since October last year, and the cases involved at least 730 million yuan ($106 million).

The fraudsters falsely claimed that they have been entrusted by the government to unfreeze "national assets overseas" and conned the victims into paying "start-up capital" or "membership fees" for deceptive investment programs.

The suspects also forged official documents and misinterpreted government polices to mislead victims.

In some cases, brainwashing was also used, according to the statement.

The ministry said it has set up a special team for the crackdown and directed operations in 14 major regions.

The statement said that such fraud schemes violated people's property rights and harmed the government's credibility. It pledged to continue with "high pressure" against violations.