Chinese online financial firm boss handed over to prosecutors

Police in east China's Jiangsu Province on Friday handed over Zhang Xiaolei, the boss of online financial firm Qbao.com, to prosecutors for inquiry and indictment over suspected fund-raising fraud.

According to the Nanjing Municipal Public Security Bureau, Zhang turned himself in on December 26, 2017.

Police investigation found that Zhang, who founded Qbao.com in 2012, used the platform to accumulate money from investors lured by annual returns of 20 to 40 percent, the bureau said in a statement.

Qbao.com, which faked investment projects and companies, used funds from new depositors to pay off old debts.

The site was found to have amassed over 100 billion yuan (US$14.7 billion) and the unpaid principal totals 30 billion yuan.

Local police have frozen some assets to retrieve investor losses. The assets will be disposed of, and the money will be returned to investors according to the legal proceedings.

Police authorities have asked investors to register information in a timely manner and not to fabricate and spread rumors and organize illegal activities to disturb public order.