(Yicai Global) Jan.7 -- Authorities in China have arrested the founder of controversial herbal health firm Quanjian Group along with 17 others for suspected pyramid selling, false advertising and illegal medical practices.

Police in the northern municipality of Tianjin have brought in Shu Yuhui, the 51-year old actual controller of the company, local online news outlet TJ Yun reported, adding that another two suspects have been released on bail.

Formed in 2004, Quanjian faced questioning last month after a report claimed that the firm intervened in and delayed cancer treatment for a four-year-old girl named Zhou Yang, who eventually died. Authorities launched an investigation into the claims on Dec. 27.

Editor: William Clegg