A BUSINESSWOMAN has become the latest wealthy Chinese to be arrested for fraud after police alleged she had raised investment funds illegally, state-controlled media reported.
Dong Lixiong, 29, from eastern Zhejiang province had received more than 300 million yuan (S$60 million) by promising investors unreasonably high returns, Xinhua news said on Saturday, citing police in Jinhua city.
Between May 2006 and March 2007, Dong took cash from relatives and friends, as well as business managers, farmers, workers and civil servants, promising returns of 10 to 25 per cent.
When her financial ventures failed, 21 people including an uncle accused her of fraud after the funds she returned to investors fell short by 53 million yuan, the report said.
'Many of them suffered huge losses, and some even attempted to commit suicide by jumping from high-rise buildings,' Xinhua quoted police as saying.
'When police arrived at Dong's residence, there were more than 20 people there demanding she repay debts.'
After a string of investment scandals regulators tightened rules in 2005 banning money managers from promising clients returns on investments.
Xinhua gave no details of Dong's investments and wealth.
She is the second woman in Zhejiang to be detained on charges of financial fraud in less than six months.
Wu Ying, 26, head of the Bense Holding Group which owned shopping malls, vehicle servicing garages, hotels and coffee shops, allegedly collected funds based on promised returns of up to 10 per cent a month. -- AFP
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The Chinese like to gamble, so some loose, in this case the money is probably gone and the lady is probably sold in parts and pieces to the organ business
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