Direct selling news August 2(Peoples Network)  Economic crime investigation detachment of Huludao city,Liaoning province has destroyed the pyramid schemes network which proceeded in 12 provinces and cities,total smashed 52 dens,closed

2 websites, involved amount has reached to RMB15,000,000, arrested No.1 and No.2 leaders who are responsible for the pyramid schemes market of Liaoning province and Huludao city separately.The development of network has involved ten

thousand people which is mainly on pyramid selling “Guocuiyu” rice head by head, and broadcast that this rice can cure disease.

On June 27,the related officials of Economic crime investigation detachment of Huludao city announced that 5 of 8 people who are captured by police have been 

arrested by the crime of organizational lead pyramid schemes by procuratorial organ and transferred to prosecution.

National illegal pyramid schemes in the name of selling rice

As to police,last year on May 25 they received reports from the masses that Harbin Algae biotechnology development co., LTD. has proceeded illegal pyramid schemes activity In the name of selling “Guocuiyu” spirulina rice in Huludao city.

Economic crime investigation detachment of Huludao city immediately combined with The industrial and commercial administrative departments monitored and investigated the exclusive shops for selling “Guocuiyu” spirulina rice in Lianshan area,Huludao city. On June 7, Zhang(Female),45-year-old,the general agent of Huludao city with other 2 have been captured.After further investigation,

from July,2012,this organization organized and leaded pyramid schemes activities

in the name of selling “Guocuiyu” spirulina rice,through setting up exclusive shops

in different provinces and cities,taking hierarchy way to develop membership,

pay for membership fee and rebate by tier etc.

smash 52 pyramid schemes dens,close 2 websites

According to Zhang’s bank account transaction and confession after capturing Zhang,police use technology to survey and finally lock the upper line targets.Sun X(female),60-year-old,Dalian people,the general agent of Liaoning district;

Sun XX,40-year-old,Harbin people,the president of Harbin Algae biotechnology development co., LTD.,No. 1 of the organization;Han XX,Changchun people,General Manager of Harbin Algae biotechnology development co., LTD.,No. 2 of the organization.

In order to investigate and collect evidence and capture criminal suspects,Huludao city has taken out about 200 polices successively and rushed to

3 provinces and 17 cities with the distance more than 8000kms,successfully arrested

the main targets Sun X,Sun XX,Han XX.This event has been listed as supervision case by Ministry of Public Security,which launched cluster campaign in nationwide and closed successfully,realized the comprehensive destroy to this organization.

Police has checked and dismissed more than 12,000 participants in total,smashed 52 dens,

closed 2 websites,the involved amount has reached to 15,000,000,recovered the involved money and asset more than 30,00,000.

Police launch special action fight against pyramid schemes

According to police,illegal pyramid schemes is in a intensified trend at present,

which shows in strong organization,mobility,fraudulence and severely disturbs residents’ normal life.So Ministry of Public Security and Provincial departments

have paid high attention and carried out “Fight against pyramid schemes special action” nationwide.Local police carry out the law enforcement policy and regulation

Propaganda for “Fight against pyramid schemes,Anti-fraud,Promote harmony” to

Increase masses’s precaution awareness and can provide pyramid schemes criminal clues to Ministry of Public Security proactively. Local police station will unite community policing work,propagandize and search from door to door to find out district’s pyramid schemes clues timely,carry out fighting and renovation move

cooperatively.

As far as we know, although this pyramid schemes organization has been collapsed, when it develops the online pyramid schemes, it also handles other illegal behaviors. So we still need to

Intensify the crackdown to pyramid schemes and make sure the construction goal of No Pyramid Schemes Community come true.

editor：jack