(Yicai Global) Feb. 19 -- Police in the southern Chinese city of Shenzhen have arrested nine officials at China Gold Rich Group, which sells wealth management products, on suspicion of illegally taking investors' money.

The police said the Shenzhen-based company raised more than CNY2 billion (USD286 million) and has nearly CNY600 million still outstanding, Securities Times reported today. They are conducting an in-depth audit of the company's use of funds, commissions, investment project profits and losses, and personal possessions.

Founded in 2011, China Gold Rich raised a total of about CNY2.2 billion and paid CNY1.7 billion in principal and interest to investors, according to information released by law enforcement.

Company head Qin Peng, who owns 99 percent of China Gold Rich, and another executive surnamed Zheng were arrested this month. The police have also seized three sets of properties, confiscated one vehicle, frozen more than 30 accounts involved in the case, and will continue to pursue the assets and funds involved.

The company had been making timely payments for its investment products since 2014 until last May 22, when investors suddenly received a liquidation letter, one investor said.

In fact, as early as May 2019, Qin announced the liquidation of the products at an internal meeting, saying they would no longer raise funds or pay the principal and proceeds. This caused a stir in the company, since most employees had invested in their own products.

Many investors rushed to the company's office after the liquidation notice only to learn that Financial Director Zhou Caihong and Xiang Jieming, head of the risk control department, had left in April, and the company was closed.

Editor: Peter Thomas