Direct selling news August 2 (Western Business Daily) Flagged with showing hearts and poor help poor, in the name of “filial piety charity union”, pyramid schemes

activists have developed 50 lower lines in Baiyin city and defrauded funds more than RMB90,000.On June 26, criminal suspect Chen X has been authorized to arrest on suspicion of organizing and leading pyramid schemes activity by procuratorate of Pingchuan district of Baiyin city.   

From August,2013, in the name of “filial piety charity union”, Chen X has organized and propagandized illegal pyramid schemes activity through lecturing and watching videos and other ways in Pingchuan district, Baiyin city. The organizer claims that “filial piety charity union” is a financial service game of showing hearts, poor help poor ,rich help poor, everyone can do it, this activity can boost domestic demand and consumption for country, let people have food to eat and money to earn. They even boasts that previous entrants have already obtained high returns in the short term which induced others to get so-called joining organization qualification by investing RMB3,000 or 6,000 in advance , then to form different classes as per the sequence and contacts, to rebate according to the quantity of participants by developing and introducing, using high interest to induce entrants to develop others to join in and cheat property. Up to the crime happens, they have already developed over 50 members with the 9 level membership and defrauded money more than RMB90,000.

editor：Jack