Thai Police Bust Chinese Ponzi Scheme

Song Muqiu, Gen Lianbao and Wang Wenfang were arrested on 26 Oct for allegedly operating a Ponzi scheme in China, Malaysia, and Thailand.

BANGKOK — Thai police arrested three members of a Chinese gang that used a Ponzi scheme to scam up to 6,000 million baht from thousands of people in China, Malaysia, and Thailand.

The gang allegedly convinced more than 100,000 people to invest in their company, named Yum Shu Mao, and paid them "returns" from the investments of new entrants, not actual profits. 

Thai officials became suspicious after the company set up a branch in Southern Thailand in June. After presenting evidence to a provincial court in Phuket, police were granted arrest warrants for three alleged operators of the scheme: Song Muqiu, Gen Lianbao and Wang Wenfang.

The three suspects were arrested in Bangkok on Monday.

Before expanding to Thailand, the company allegedly swindled more than 3,000 million baht in Malaysia from over 80,000 victims. 



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