A MAN was arrested in Nanshan District for alleged stock fraud involving more than 10 million yuan (US$1.5 million), Nanshan District Procuratorate said Tuesday.
The suspect, identified as Wang, won the trust of three victims, identified as Liu, Mai and Deng, by claiming to be the president of a Shenzhen securities brokerage in 2009, Sznews.com reported, citing prosecutors.
Wang allegedly took the three victims to his so-called office and told them that he had insider information on stocks in August 2009, prosecutors said.
He promised to help the three victims make more than 200 percent profit in one year if they commissioned him to help them invest in the stock market. In return, he would charge them 30 percent of the total profit as commission.
Liu and Deng gave Wang 12 million yuan while Mai gave him 20 million yuan to invest in stock market, the report said.
It was alleged that Mai had later paid Wang 14 million yuan while Liu and Deng paid 4.73 million yuan as commission in August 2010 after Wang allegedly forged a high return of 48 million yuan from stock investment.
Wang s forgery was uncovered by the victims in October, but they were unable to find him.
Liu, Mai and Deng reported the case to police, who detained Wang on Oct. 30.
Wang will face criminal charges, prosecutors said. (Li Jing)
