China freezes USD 94 million assets of Taiwanese couple over alleged pyramid scheme
Dec 31, 2021
Beijing [China], December 31 : Chinese authorities have reportedly frozen the assets of a company founded by a former Taiwanese actor and his wife alleging pyramid scheme activities.
As per Taiwan News, assets of former Shanghai Dowell Trading Co Taiwanese actor Lin Ruiyang and his wife Zhang Ting, a former actress, have been frozen by Chinese authorities.
An investigation was launched by Shijiazhuang authorities in June into Shanghai Dowell Trading Co, a skincare business owned by the couple, for allegations that it has profited from an online pyramid scheme and transferred and hidden related funds via financial institutions, Chinese media reported.
As much as CNY600 million (US$94 million) worth of assets was frozen and the probe is still ongoing, according to a statement by the Shijiazhuang Yuhua District Market Supervision Administration.
Lin and Zhang were both quick to respond, saying on their Weibo accounts that the company has complied with the law and "they were grateful to the government for the inspections." Operations of the company remain unaffected and it will fully cooperate, the statement said.
The alleged pyramid scheme reportedly started in 2013 and has entangled "many individuals" and a considerable amount of money. A 17-person task force was set up to dig into the case, wrote UDN.
The high-profile couple has built a business empire in China with a total value estimated at over NT$150 billion (US$5.4 billion). They are known to be fond of flaunting their wealth and displaying affection towards each other publicly, with Zhang reportedly having boasted about her house being "inundated with money."
