Ponzi Operator Confesses on Live TV in China as Police Unveil New Unit
- Xu Qin of Zhongjin Capital Management confesses on live TV in China.
Rarely are confessions on live television seen, but senior executive Xu Qin from Chinese investment firm in Shanghai, Zhongjin Capital Management, implicated himself on state television on Monday, confessing to operating a typical Ponzi Scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term, and according to reports by Reuters.
Police had accused Zhongjin in April of ‘illegal fundraising’ and Qin was arrested along with twenty other executives with ties to the firm, leading him to confess on TV, “The way we operated our fund was with a Ponzi scheme method.”
He said, in front of the cameras, “we used money from investors who came later to pay the interest owed to earlier investors," and added, "It was actually an extremely typical Ponzi scheme." Qin had been arrested in connection with the case while en route to be married in Italy, according to prior media reports, halting more than just his financial activity.
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
Police unveil securities unit
While rights activists say that confessions are often forced in China, it’s not clear if this one was voluntary or if the accused man’s rights to due process were violated, as Xu had not been formally tried in Court, as per Reuters coverage.
In addition, the media exposure may have been timed with the announcement of a new financial crime enforcement unit for securities that was unveiled on Monday by Shanghai Police, according to reports by China's Wenhui Daily.
In China, the term ‘illegal fundraising’ can vary because of the opaque nature of the country’s shadow-banking sector, hidden within the alternative and traditional finance industry.
Yet, authorities are trying to crackdown and detect such activity, as related systematic financial fraud is sought out to be eradicated by Chinese regulators.
The confession was recorded by China Central Television (CCTV), the country’s official state broadcaster, where Xu Qin was described as a high-roller (i.e. Wolf of Wall Street).
China's police also strengthened in other areas recently, after one of its members literally broke a new Guinness world record on Sunday with a tremendous muscular endurance feat, after holding a plank position for over eight hours - making it the longest held to-date. With regard to the Ponzi scheme, it's not yet clear how many clients of Zhongjin Capital Management have been affected and to what extent.
Rarely are confessions on live television seen, but senior executive Xu Qin from Chinese investment firm in Shanghai, Zhongjin Capital Management, implicated himself on state television on Monday, confessing to operating a typical Ponzi Scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term, and according to reports by Reuters.
Police had accused Zhongjin in April of ‘illegal fundraising’ and Qin was arrested along with twenty other executives with ties to the firm, leading him to confess on TV, “The way we operated our fund was with a Ponzi scheme method.”
He said, in front of the cameras, “we used money from investors who came later to pay the interest owed to earlier investors," and added, "It was actually an extremely typical Ponzi scheme." Qin had been arrested in connection with the case while en route to be married in Italy, according to prior media reports, halting more than just his financial activity.
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
Police unveil securities unit
While rights activists say that confessions are often forced in China, it’s not clear if this one was voluntary or if the accused man’s rights to due process were violated, as Xu had not been formally tried in Court, as per Reuters coverage.
In addition, the media exposure may have been timed with the announcement of a new financial crime enforcement unit for securities that was unveiled on Monday by Shanghai Police, according to reports by China's Wenhui Daily.
In China, the term ‘illegal fundraising’ can vary because of the opaque nature of the country’s shadow-banking sector, hidden within the alternative and traditional finance industry.
Yet, authorities are trying to crackdown and detect such activity, as related systematic financial fraud is sought out to be eradicated by Chinese regulators.
The confession was recorded by China Central Television (CCTV), the country’s official state broadcaster, where Xu Qin was described as a high-roller (i.e. Wolf of Wall Street).
China's police also strengthened in other areas recently, after one of its members literally broke a new Guinness world record on Sunday with a tremendous muscular endurance feat, after holding a plank position for over eight hours - making it the longest held to-date. With regard to the Ponzi scheme, it's not yet clear how many clients of Zhongjin Capital Management have been affected and to what extent.