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April 17, 2009
China's largest Ponzi scheme
From rich list to court
Once one of China's top 100 richest people, woman now faces death penalty
Wu's lawyer, Yang Zhaodong, told the court she had done nothing illegal and only borrowed money from friends, the report said. -- PHOTO: REUTERS
SHANGHAI - A 28-YEAR-OLD woman once ranked as one of China's 100 richest people faces the death penalty for allegedly running the country's largest Ponzi scam, state media reported on Friday.
Wu Ying pleaded not guilty in a court in east China's Zhejiang province where she was accused of running a 390 million yuan (S$85 million) scam in which phoney profits were paid to clients by stealing from new customers, China Daily reported.
The Ponzi, or pyramid, scheme was the largest of its kind in China, the newspaper said, without providing further details.
The source of Wu's estimated 3.6 billion fortune was a mystery when she was ranked 68th on a 2006 rich list compiled by the Hurun Report, a magazine that tracks China's wealthy, China Daily said.
She was arrested in February 2007, just months after appearing on the list.
The indictment read in court on Thursday accused her of collecting money, claiming it would be used to register companies, fund projects or go toward improving her company's cash flow, the report said.
Wu's lawyer, Yang Zhaodong, told the court she had done nothing illegal and only borrowed money from friends, the report said.
Wu's friends in turn collected money from others, Yang said, adding she should not be held responsible for their actions.
She had used the money to invest in profitable businesses such as hotels, trading companies and property developments, he said.
In January, seven people who allegedly collaborated with Wu were convicted of fraud and received jail sentences ranging from 22 months to six years and fined between 20,000 yuan and 300,000 yuan. -- AFP
April 17, 2009
China's largest Ponzi scheme
From rich list to court
Once one of China's top 100 richest people, woman now faces death penalty
Wu's lawyer, Yang Zhaodong, told the court she had done nothing illegal and only borrowed money from friends, the report said. -- PHOTO: REUTERS
SHANGHAI - A 28-YEAR-OLD woman once ranked as one of China's 100 richest people faces the death penalty for allegedly running the country's largest Ponzi scam, state media reported on Friday.
Wu Ying pleaded not guilty in a court in east China's Zhejiang province where she was accused of running a 390 million yuan (S$85 million) scam in which phoney profits were paid to clients by stealing from new customers, China Daily reported.
The Ponzi, or pyramid, scheme was the largest of its kind in China, the newspaper said, without providing further details.
The source of Wu's estimated 3.6 billion fortune was a mystery when she was ranked 68th on a 2006 rich list compiled by the Hurun Report, a magazine that tracks China's wealthy, China Daily said.
She was arrested in February 2007, just months after appearing on the list.
The indictment read in court on Thursday accused her of collecting money, claiming it would be used to register companies, fund projects or go toward improving her company's cash flow, the report said.
Wu's lawyer, Yang Zhaodong, told the court she had done nothing illegal and only borrowed money from friends, the report said.
Wu's friends in turn collected money from others, Yang said, adding she should not be held responsible for their actions.
She had used the money to invest in profitable businesses such as hotels, trading companies and property developments, he said.
In January, seven people who allegedly collaborated with Wu were convicted of fraud and received jail sentences ranging from 22 months to six years and fined between 20,000 yuan and 300,000 yuan. -- AFP
