Prison sentences for investment fraudsters
Seven people have been given prison sentences ranging from four and a half years to life for illegal fundraising through fraud involving 3.7 billion yuan (US$528 million).
Shanghai No. 1 Intermediate People’s Court said that a man surnamed Han had established three companies related to asset management.
Between 2013 and 2018, Han led investors to believe that they could benefit from annual interest rates of between 6 and 12 percent. Over 9,700 people invested a total of 3.7 billion yuan.
At Han’s direction, the other six suspects used the money for capital and interest (2.6 billion yuan), investment, lending and company operations, the court said.
The companies involved were fined from 20 million yuan to 50 million yuan, while the seven suspects were fined between 300,000 yuan and 10 million yuan in addition to their prison terms.