Insurance agent faces fraud trial

An insurance agent who allegedly swindled nearly 6 million yuan (US$876,796) from six clients has been arrested, according to prosecutors of Baoshan District.

The suspect, surnamed Jiang, worked for China Pacific Life Insurance Co. In 2012, Jiang concocted a scheme to defraud his clients in order to obtain funds to invest in the stock market, prosecutors allege.

Jiang allegedly approached six of his clients with offers to invest in a financial product that was extremely lucrative but only available to China Pacific employees. The clients transferred 5.94 million yuan to Jiang, who offered to invest their money under his name, prosecutors contend.

Unbeknownst to his victims, Jiang was using their money to invest in stocks, prosecutors charge. To make his scam more believable, he allegedly forged a company stamp and made fake receipts, prosecutors say. 

But instead of making money, Jiang was said to have lost more than 1 million yuan. Jiang made regular interest payments to his victims until October 2017, when he ran out of money and decided to hand himself over to police, prosecutors allege.

Jiang will be charged with fraud and could face at least 10 years in jail if found guilty, prosecutors said.