How MLM Can Get You Killed
December 9, 2008 | By Monika Mundell | No Comments »
China is pretty well known for their death sentences. Now one shoddy operator had to find out first hand when he was executed last month after being called running an illegal ant investing pyramid scheme.
The official Xinhua News Agency reported that Wang Zhendong, who was found guilty of fraud and sentenced to death in February last year, was executed in north China’s Liaoning province on Nov. 26. Wand who was chairman of Yingkou Donghua Trading Group Co., promised investors returns up to 60% when they purchased ant-breeding kits from the two companies he ran.
The Chinese believe ants to have super powers and these are used frequently in traditional Chinese medicinal remedies. It makes them a high priced item. Using the demand in the market place, Wang bought these kits for $25 and sold them on for $1,300 making a nice hefty profit along the way.
As it happens, investors never saw the promised returns and once the story got out, Wang was convicted of fraud and eventually sentenced to death.
More than 10,000 investors fell prey to this scheme between 2002 and June 2005, when the company was shut down by investigators. Out of the estimated $416 million fraud only $1.28 million were recovered.
It’s nice to see justice being done in some ways. However, the thousands of people who got stung financially might have to live with their wrong investment for a long time to come.
Tags: mlm, mlm fraud, mlm pyramid schemes
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