China Jails 26 People Over MMM-Styled Ponzi Scheme
In Nigeria and other parts of Africa, it was MMM that brought sudden joy that overnight became a curse.
In China, it is Ezubao, an MMM-styled ponzi scheme that left close to 1 million unsuspecting investors’ fingers badly burnt.
The investors were said to have lost $7.6 billion, about 2.3 trillion naira to the fraudulent scheme.
However, unlike in Nigeria where the operators of MMM went scot-free, the law is taking its full course in China.
On Tuesday, two senior executives of Ezubao were sentenced to life in prison.
24 others, who participated, were punished over what has been called China's biggest-ever Ponzi scheme.
Ezubao reportedly swindled these investors between 2014 and 2015.
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The brazenly luxurious lifestyles of top Ezubao bosses drew wide attention to the long-running case -- one of several recent high-profile trials to shine a light on pervasive fraud and corrupt practices in the Chinese financial industry.
The company was alleged to have fabricated most of the projects on its website and paid old debts with money from new investors.
Ding Ning, head of Ezubao's parent company Yucheng Holdings, was sentenced by a Beijing court to life in prison for charges ranging from fraudulent fundraising to illegal possession of a gun, China’s state media, the People's Daily reported.
Another top corporate official, Ding Dian, also received a life sentence.