Zendai probed for illegal fund raising
Zendai Group is under investigation for illegal fund raising after Dai Zhikang, the founder and legal representative of the company, surrendered to the police.
The Pudong branch of Shanghai Public Security Bureau announced yesterday on its official Weibo account that the legal representative and the general manager of Zendai had surrendered to the police, and confessed to illegal acts such as setting up a capital pool and misappropriating funds, which can no longer be redeemed.
The case is being investigated on suspicion of illegally absorbing public deposits. The bureau has taken criminal compulsory measures against 41 suspects, including Dai, in accordance with the law and has seized their assets involved in the case.
According to the bureau, they had received reports from the public on illegal fund raising of zhaocaibao.com and Zendai Money Company, two companies owned by Zendai Group. The police then launched its investigation.
On August 26, laocaibao.com, a peer-to-peer lending platform owned by Zendai Group, posted a note on its website from Dai to its users, clearly stating that they are not going to “run away.”