Cross-strait Ponzi crackdown arrests 89 suspects, CIB says
The China Post news staffTAIPEI, Taiwan -- A cross-strait joint sting operation has cracked down a fraud ring, arresting 89 suspects allegedly running a Ponzi scheme which has lured almost 1,000 people into investing in a bogus project in China, the Criminal Investigation Bureau (CIB) in Taiwan said yesterday.
August 24, 2013, 12:00 am TWN
The authorities in China have arrested 35 suspects, including 15 Taiwanese, while police in various areas in Taiwan have nabbed 54 others, seizing bank books, lists of investors, and other items, the CIB said.
More than NT$100 million was involved in the Ponzi scheme, the CIB said, adding that all of the suspects arrested in Taiwan have been transported to the New Taipei District Prosecutors Office for initial interrogation.
The fraud ring had investors put their money in a so-called “capital investment project” in Nanning, Guangxi province. They lied to the investors that such Ponzi operations were legal in China, CIB said.
Having received complaints about this Nanning project, the Taiwan High Court Prosecutors Office earlier this year invited authorities from Beijing to a meeting probing the possibility of a joint crackdown on the ring, according to the CIB.