The Ministry of Public Security (MPS)has issued a Class B
warrant for the arrest of four suspects allegedly involved in an
illegal pyramid-selling project.
The four have allegedly been involved in extorting over 1.3
billion yuan (US$174 million) from investors through an illegal
pyramid-selling project involving a suspect afforestation
investment project, the Beijing News reported.
A reward of 10,000 yuan each has been offered for information
leading to arrest of each of the four suspects, Chen Di, Chen Da,
Chen Jing and Chenqi, according to the MPS.
Last month, two suspects were arrested for the pyramid selling
project in north China's Inner Mongolia Autonomous Region,
including Chen Xianggui,the board chairman of a registered
afforestation company and Liu Yanying, general manager of the
company.
More than 32,200 people from 12 provinces and municipalities
were promised sizeable profits before they handed money to the
company based in north China's Inner Mongolia Autonomous
Region.
Chen and Liu charged the investors 1,660 yuan for each mu of
land (0.066 hectare), and promised 12 cubic meters of timber in
eight years and 15 cubic meters in 10 years, which means their
investment would have been quadrupled, said Fan Xinyi, an official
with the local Public Security Bureau in Inner Mongolia Autonomous
Region told Xinhua.
It is almost impossible for the trees to bring such a hefty
profit in a region where the natural conditions are harsh, said a
local farmer.
Deserts in the Inner Mongolia Autonomous Region has been
plaguing the country by bringing sand storms to the local region
and Beijing, China's capital city.
The company has been involved in "illegal pyramid-selling with
bogus advertisement" because it paid bonuses to its members based
on the number of the investors they can draw in, said Fan.
(Xinhua News Agency November 7, 2007)