[Direct Press Beijing, May 11] (China Consumer News) Luo Shushu, Chen Hong, and Chen Kui of Liupanshui City, Guizhou Province, are the three leaders of Quanjian Natural Medical Technology Development Co., Ltd. (hereinafter referred to as Quanjian). Flags, engaged in MLM activities, were recently sentenced by the final trial of the Intermediate People's Court of Liupanshui City, Guizhou province, from 6 months to two years and six months, and imposed fines ranging from 20,000 to 30,000 yuan. The repealed money involved in the case was RMB 1,612,110.50 and was confiscated.

 

It is understood that Quanjian Company is a direct selling company established according to law and has stores in Liupanshui City, Guizhou Province.

 

In August 2012, Luo Shushu became the franchisee of Quanjian Company through the introduction of others, and began to seek out partners to prepare for the promotion of Quanjian's products and the promotion of fire therapy technology.

 

After several contacts, Chen Hong and Chen Ku agreed to join. Three people carried out meticulous division of labor. Luo Shushu and Chen Hong were responsible for daily publicity training, marketing and personnel development. Chen Kui was responsible for the purchase and delivery of commodities, and participated in the training of some personnel and the promotion of products.

 

From the beginning of 2013 to the end of June 2015, three people under the banner of the right to sell the company's direct sales products and provide the name of fire therapy technology, require participants to purchase different shares of the product of “Jianjian”, which is divided into 1068 yuan and 7500 yuan. Yuan, 2.3 million 3 levels.

 

Claiming that the participants can obtain the qualifications of "Qiangjian" members or distributors according to the size of the purchase amount, and form a top-to-bottom relationship according to the levels of 1 to 5 star dealers, junior managers, middle managers, and yellow diamond managers;

 

Participating staff to develop the number of off-line staff and sales of merchandise rebate how much, as a basis for the remuneration, including pay-per-reward, "return to the award" and so on. As of the time of the incident, Luo Shushu and Chen Hong had developed 39 personnel and reached more than three levels.

 

On June 12, 2015, Luo Yishu and Chen Hong were organized and trained by the Fengshui New District, Zhongshan District, Liupanshui City. They were seized by the Liupanshui City Industry and Commerce Bureau and handed over to the Liupanshui Public Security Bureau Economic Investigation Detachment. Chen Kwai voluntarily surrendered himself to the public security agency on July 9, 2015. After the incident, Luo Yushu returned 325,663 yuan, Chen Hong returned 120,540 yuan, Chen Kui returned 85,079 yuan, and Quanjian returned 1,109,928.50 yuan.

 

The People's Procuratorate of Zhongshan District, Liupanshui City, organized crimes for organizing and leading pyramid selling activities and filed a public prosecution against three people.

 

The People's Court of Zhongshan District, Liupanshui City, held a hearing to hear the case and made the first-instance judgment on May 12, 2017. It convicted Luo Yu-shu of committing crimes of organizing and leading pyramid schemes and sentenced him to two years and six months of imprisonment and a fine of RMB 30,000.

 

Chen Hong was found guilty of committing crimes of organizing and leading pyramid marketing activities and was sentenced to two years imprisonment and a fine of RMB 25,000; Chen Kwei was found guilty of organizing and leading pyramid selling activities, and sentenced to one year and six months’ imprisonment, and suspended for two years. , And fined 20,000 yuan;

 

The illegal deposits amounting to RMB 1,612,110.50 were confiscated and turned over to the state treasury.

 

After the first instance verdict, Luo Yushu appealed to Liupanshui Intermediate People's Court.

 

The Liupanshui Intermediate People’s Court found that Quanjian Company is a direct selling company established in accordance with the law and has a franchise relationship with the Liupanshui Store. The sales model between the company and the store is to buy a one-for-one purchase while providing a sales subsidy of 6%. No other sales model is known.

 

However, Luo Shu-shu et al. used the name of selling products and providing technology to require participants to purchase products to qualify for membership, and formed a hierarchy in a certain order to induce participants to continue to develop offline products, and to develop the situation of offline staff and sales performance. According to the calculation of remuneration, and the development of a staff of 39 people, forming a three-tier hierarchy, which disrupts the behavior of social and economic order, constitutes the crime of organization and leadership of pyramid schemes.

 

The trial of the Intermediate People's Court of Liupanshui City held that the original judgment found that the facts were clear, the evidence was indeed sufficient, the conviction and sentencing were appropriate, the trial procedure was legal, and the ruling rejected the appeal and upheld the original verdict.