October 19, 2021
Scam/Fraud

Six held over ‘free’ beauty services for women Ponzi scheme

Ti Gong

Police nab suspects recently from Minhang and Xuhui districts.

Six suspects have been nabbed for allegedly running a Ponzi scheme for women seeking beauty services, Shanghai police said on Thursday.

The suspects allegedly illegally raised over 37 million yuan (US$5.7 million) from over 700 clients. It is the first case of its kind ever reported in Shanghai, police said.

Police started their investigation after a woman surnamed Shi reported about her experience in May this year.

Shi said she borrowed 120,000 yuan to buy a prepaid card from a beauty service agency called “Cansi.” The company promised that she wouldn’t need to return the money herself, and would get 10,000 yuan plus interest from the company every month.

After signing a contract with the agency, Shi started her beauty program, said to be worth 2,000 yuan, at a clinic in Yangpu District….

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