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China / Society

Beijing cracks $8b investment fraud case, arrests 21

By Zhang Yan (China Daily) Updated: 2016-02-02 04:33

Luxurious lifestyles

According to Beijing police, funds were paid to some investors as high-interest returns, but a large amount of the funds in Yucheng Group was spent for senior executives' luxurious lifestyles, maintaining the company's operating costs and advertising.

At the end of last year, police officers and financial regulatory bodies in Beijing, Shanghai and Anhui found that Yucheng International Group and E Rent Treasure were involved in allegedly illegal business operations. Yucheng Group is also accused of destroying evidence and transferring illegal funds, and some executives fled to avoid legal punishment, said the police officer who requested anonymity.

"In order to destroy evidence, the suspects took 1,200 books of evidence in 80 woven bags and buried them in the ground as deep as 6 meters in a suburban area of Hefei, the capital of Anhui. It took us 20 hours to dig out them with two excavators," the officer said.

On December 8, the ministry directed police in Beijing, Shanghai and Anhui to conduct a joint action to arrest Ding and other executives, and the criminal ring was smashed.

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