Third Chinese OneCoin affiliate arrests uncovered, $1.2 million in losses
Up until recently BehindMLM was aware of and reported on two separate arrests of Chinese OneCoin affiliates.
The first arrests took place in April, 2016, around the time OneCoin intended to hold a “grand ceremony” event in Harbin (north China).
The event was quietly dropped following a raid on a OneCoin promotional event in Guandong and arrest of three affiliates in March.
The bust appeared to be of one of the larger Chinese OneCoin affiliate groups, with authorities in Guandong eventually recovering $45.7 million dollars.
Earlier this month news broke of another round of arrests, this time thirty-five OneCoin affiliates arrested, jailed and fined in Zhuzhou City, Hunan Province (north of Guandong).
In between these two busts was yet another investigation and arrest of Chinese OneCoin affiliates, previously unreported until a week ago.
Authorities in the north-eastern Shandong Province received a report from a concerned citizen related to recent OneCoin affiliate recruitment activity in the area.
Police launched an investigation and discovered a suspect surnamed Yu had opened a local “OneCoin information service center”.
Further investigation revealed Yu had joined and been promoting OneCoin since July, 2015.
Based on OneCoin’s business model, Yu convinced locals to invest in OneCoin by touting high returns and commissions paid upon recruitment of new investors.
Not content with promoting just one Ponzi scheme, Yu paired OneCoin with another scam identified as UM Financial Management.
Police identified a top investor in Yu’s downline, another man surnamed Liu.
After obtained and examining “thousands of transactions” to and from Yu’s personal bank accounts, police were able to establish how stolen funds were laundered offshore into OneCoin.
That was enough to nab Yu and Liu on fraud charges, with police arresting the pair later the same month (December, 2016).
Total losses to the OneCoin scam in Shandong Province stand at $1.2 million dollars stolen from 456 duped affiliate investors.