China's biggest ponzi scheme

We have heard and seen various Ponzi schemes duping people in India; in our country it is such a common occurrence, we do not even react to such news. But it was sadistically good to know that something like this happened in China too – at least we humans, across all race, color, culture and nationalities are same – corruption is a deep rooted base instinct.

Touted as the “biggest Ponzi scam ever”, this company in China, Ezubao stole from 9 lakh investors – making it China’s largest ever case of investor fraud. The executives in cahoots with the senior management have fleeced $7.6 billion from investors.

The company promised annual returns of 9 to 14.6% with 95% of the projects listed on it website nonexistent. It used new cash to repay old customers and this is now kept the scheme afloat, snaring more and more gullible people. A Chinese newspaper has reported that the company’s Chairman spent some 1 billion yuan on gifts like a 12-million yuan diamond ring , even giving away 550 million yuan in cash. He aso gave away cash – some 1 million yuan to his brother per annum.

The difference here from India – all accused are behind bars and justice will be swift.