On March 15, the reporter learned from the law enforcement department of the Municipal Bureau of Industry and Commerce that after two years of efforts, the city's industrial and commercial law enforcement department, on the basis of meticulous investigation and meticulous investigation in the early stage, and as many as 27 groups of illegal evidence and facts, investigated and punished Anguo Tongyuantang Biotechnology Co., Ltd., with the purchase of a certain amount of "Jincheng Tongyuantang" brand food as a precondition, obtained membership, and can calculate the number of recommended people to buy or sell the company's products to calculate personal performance and obtain the company's rewards to develop the offline line, and finally amassed millions of dollars." The 10.15" series of pyramid schemes was successfully concluded.
According to law enforcement officials, on September 27, 2014, when the Municipal Bureau of Industry and Commerce investigated the case of Han XX in Huixian City and Zhang XX in Makino District of Xinxiang City suspected of carrying out pyramid scheme activities in Jiuzhou Hotel in Xinxiang City, it found a suspected clue that Anguo Tongyuantang Biotechnology Co., Ltd. was suspected of engaging in pyramid schemes in our city. Subsequently, the Economic Inspection Detachment of the Municipal Bureau of Industry and Commerce set up a special case team on October 15 of that year to file a case for investigation.
After investigation, since November 2013, Anguo Tongyuantang Biotechnology Co., Ltd. has obtained membership on the condition of purchasing a certain amount of the company's "Jincheng Tongyuantang" brand food, and can calculate the personal performance of the company's products according to the number of recommended people to buy or sell the company's products to obtain the company's rewards, through the Kaifeng Yang xx began to develop personnel in our city to engage in pyramid schemes. After investigation by law enforcement personnel, as of the time of the case, Anguo Tongyuantang Biotechnology Co., Ltd. developed 92 members in the county (city) district under the jurisdiction of Xinxiang City through Han xxx in Huixian City, Zhang XX in Muye District of Xinxiang City, Kong XX in Huqiao in Huixian City, suoxx in Chengguan Town, Huixian City, and others in the county (city) district under the jurisdiction of Xinxiang City, including 39 provincial-level agents, 38 city-level agents, 3 county-level agents, 8 senior members, and 4 intermediate members, disguised to collect membership entry fees and sell products, and the illegal business turnover reached 1796084 yuan.
Based on various evidences, the Municipal Bureau of Industry and Commerce corroborated each other and held that the operation mode of Anguo Tongyuantang Biotechnology Co., Ltd. belonged to the acts stipulated in the Regulations on the Prohibition of Pyramid Schemes, which constituted pyramid schemes, and found that the company's illegal income was 655,080 yuan.
On September 6, 2016, the Municipal Bureau of Industry and Commerce served the Notice of Administrative Penalty Hearing to the company in accordance with the law. However, the company did not file a request for a hearing, as well as any representations and defences, within the statutory time limit.
On September 13, 2016, in accordance with the relevant provisions of the Regulations on the Prohibition of Pyramid Schemes, the Municipal Bureau of Industry and Commerce made an administrative punishment decision to "order Anguo Tongyuantang Biotechnology Co., Ltd. to correct the illegal acts, confiscate its illegal gains of 655,080 yuan, and impose a fine of 1594920 yuan" according to the circumstances of the case. At this point, this two-year-long pyramid scheme case was finally closed.