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From Caixin Online:
Internet Investment Firm Said to Raise 40 Bln Yuan Illegally
Investigators looking into Yucheng International Holdings and P2P lender Ezubo apparently find that money came from 800,000 investors
(Beijing) – Police probing a financial holding company that ran a popular investment service online have found evidence that it illegally raised some 40 billion yuan from 800,000 people, sources close to investigators say.
Yucheng International Holdings Group Ltd. and a subsidiary that managed Ezubo – a peer-to-peer lending platform that claimed to let individuals lend billions of yuan to companies – have been the subject of a police inquiry since December 8, the sources said. Ezubo has been closed since then.
Investigators said they had detained some of the firms' executives, but did not reveal what they were accused of doing wrong.
Ding Ning, chairman of Yucheng, was among the detained, people close to the matter said.
Police in the southern city of Shenzhen said on social media on January 11 that they were probing Ezubo and several other Yucheng subsidiaries related to it due to suspicions they raised funds from the public illegally. Prosecutors in Guangdong said the next day that they approved the arrest of nine people who managed Ezubo's operations in the southern province on the same charge in December.
The sources close to investigators said that more than 1,000 employees of Ezubo and other Yucheng subsidiaries are suspected of wrongdoing that fall into the category of "illegally taking deposits from the public," which according to the Criminal Law is punishable by up to 10 years in prison....MORE