} ?>
(Yicai Global) Feb. 18 -- Chinese police have cracked down since June on online peer-to-peer lending platforms implicated in illegal fundraising and have extradited some of the individuals believed to have been involved.
The police have investigated more than 380 bogus operations thus far, with assets involved nearing CNY10 billion (USD1.5 billion), state-run news agency Xinhua reported yesterday, citing a statement from the Ministry of Public Security.
The suspects used high interest rates, false advertising claims and fabricated investment targets to lure unsuspecting investors. They then squandered the defrauded funds. More than 100 executives and principals of such platforms fled and went into hiding before their cases came to light, police discovered. Some even escaped overseas after applying for the necessary certificates and documents in advance.
The ministry has prioritized suspects who flee abroad and to date has collared 62 of them in Thailand, Cambodia and another 14 countries and regions and extradited them back to China.
Local police forces in various cities have seized suspects' cash, bank deposits, real estate and vehicles to the tune of about CNY10 billion by tracking the flow of funds. Investigations and searches are still ongoing to recoup investor losses to the greatest extent.
Police departments will also work closely with other agencies to launch in-depth special actions to conduct a follow-up crackdown to avert and defuse risks of financial crimes and protect the public, a Ministry of Public Security official stated.
Editor: Ben Armour