Mammoth News Oriental Today reporter Li Wei/Wentu
On October 27, the reporter learned from the Xinmi City police that recently, after nearly ten months of investigation and evidence collection, the Xinmi police concentrated on arresting 7 major criminal suspects including Liu Mou, who was suspected of "Xing hand payment" pyramid schemes, and destroyed 6 dens involving more than 400 people in one fell swoop, freezing more than 20 million yuan of funds.
The temptation of "agents"
On December 3, 2020, a panicked man dragged his wife, Ms. Wang, to the Xinmi City Public Security Bureau and reported to the police by the investigation brigade, saying that Ms. Wang spent 59,000 yuan to buy 1,000 "agent keys" at the "Xing hand payment" company located in Zhoulou Street, Xinmi City, but it was not clear what it was for, and now the money was not coming back, and she felt cheated.
The man said that he had been working outside the home for many years, and his monthly salary of 5,000 yuan was only a few hundred yuan for meals, and the rest was all called to his wife who took care of his children at home. The wife usually saves money, this 59,000 yuan is a long-term savings, and now all of them have been cheated away, saying that the man cried...
Ms. Wang feedback that she heard about the "Xing hand payment" company at her friend's place, and after paying the 298 yuan entrance fee, she can go to the "Xing Hand Pay" service point to listen to the class for free to learn investment and financial management, and can earn high profits through the "Xing Hand Pay" e-commerce platform. At the beginning, Ms. Wang thought that she could learn knowledge and make money, so she paid a membership fee of 298 yuan. When listening to the class, the "teacher" repeatedly introduced a business opportunity that can make a lot of money, and after paying 59,000 yuan, he became an agent of "Xing hand payment", which can promote the company's platform to earn commissions, and Ms. Wang paid the money on a whim. However, it wasn't long before Ms. Wang discovered that the company didn't have physical goods and needed to continue to pull people to pay money to make money, and the more she thought about it, the more she felt like a scam.
According to the narration of the police, the police judged that this was most likely a new type of network pyramid scheme nest hidden in the new secret jurisdiction, involving more people. The police immediately conducted a preliminary investigation of the clues of the case.
New e-commerce big trap
The police went to the service point of the "Xing Hand Payment" company located in Zhoulou Street and found that the narrow space of the service point gathered the investment participants of the Hundred Tenth "Class", and the scene was shocking. Liu Mou, the person in charge of the service point, said that the company is a legally operated e-commerce company, "holding a certificate to work", the company is ready to be listed on the Shanghai Stock Exchange, the agent will obtain the company's equity, and the company is a conscientious enterprise that does practical things for the people, and refuses to cooperate with the police investigation.
At this time, Liu Mou, the person in charge of the "Xing hand payment" service center, privately contacted Ms. Wang and was willing to refund the investment money of 59,000 yuan, but asked Ms. Wang to immediately go to the public security organ to withdraw the case. Liu's operation attracted the attention of the police, who realized the seriousness of the problem of the "Xing hand payment" company.
"Although no strong evidence has been found at this time, it is aware that there is a problem with this matter. The investigation police found that the particularity of the case is that the business model of the "Xingshoufu" company is to open six service points within the scope of the new secret, each with 29 people, successfully avoiding the traditional development model of three levels and thirty people in the traditional sense of pyramid schemes, but the "Xingshoufu" company is still inseparable from the usual means of collecting threshold fees (membership fees), false publicity, pulling people's heads, developing downlines, extracting commissions and other MLM.
The survey results of the survey on the "Xingshou Pay" online mall show that its real sales are extremely low, and the profitability of the mall cannot support the daily operation of the company. And in the promotion process of the mall, the staff exaggerated the sales performance, to the company is about to be listed on the Shanghai Stock Exchange, after joining the "Xing hand payment" agent can profit from the company's development and other series of false publicity as bait, to induce people to pay 59,000 yuan threshold fee to become agents, and then to develop the number of downline personnel as a basis for remuneration or rebates.
More than 20 million frozen funds
The company sets up four levels of director, senior director, special director and partner on top of the agent, and the promotion conditions are linked to the number of direct and indirect development, and after promotion, it can obtain a higher range and proportion of profits. In essence, the number of development personnel is used as the basis for remuneration or rebates, and the relationship of development is formed at the upper and lower levels. According to statistics, with agents as the starting point, the highest level formed is 29 layers.
After nearly 10 months of operation, the case of "Xingshoufu" suspected of organizing and leading pyramid scheme activities was analyzed by the joint efforts of all the police handling the case by the investigation brigade, and the hierarchical structure and operation mode of the pyramid scheme gang were analyzed, and evidence of violations and crimes was collected in accordance with the law, forming a complete evidence chain and meeting the conditions for receiving the network.
On October 18, 2021, the Xinmi City Economic Investigation Brigade took unified action, completely closed the net, and destroyed 6 dens in the Xinmi Jurisdictional Area in one fell swoop, all of which were first-level, second-level, and third-level targets, and froze more than 20 million funds. The case was successfully cracked, and the illegal pyramid schemes were resolutely cracked down on, providing a strong guarantee for the business environment of Xinmi.
Xinmi Public Security reminds: Anyone who makes money first and pulls people's heads layer by layer to make money is a pyramid scheme. As long as you pay money without evidence, no evidence, and no certificate, you must be cautious and precautionary if you wait to make a fortune. The family fell into the pyramid scheme and lost contact, and called the police for help at the first time. (Clue provided by Zhao Jingya Hu Fangfang)