A COMPANY allegedly operating an illegal securities investment and consultancy business was raided by police in February.
Shenzhen Zhushenglang Investment Management Co., which was not licensed by the securities supervision authority, had defrauded customers out of about 16 million yuan (US$2.45 million) by promising high returns, the Daily Sunshine reported yesterday.
Police rounded up 18 suspects, all members of the company and each with a functional role in the office at SEG Science and Technology Park in Huaqiangbei, Futian District, on Feb. 22.
Police had received reports on the illegal operation in September 2009 but the group escaped from their previous office before the raid. Police found their new office through undercover interviews.
The suspects allegedly hunted victims via TV, Internet and telephone in the name of selling an investment monitoring system and collected a membership fee of more than 100,000 yuan per year by promising 3-to-10 percent return rates.
Their victims involved more than 1,000 people from 15 provinces. (Tina Chen)
