Illegal funds, scams via WeChat public accounts—Feng Xiang

On December 27,How ordinary people trade foreign exchange 2023, Shanghai First Intermediate People's Court publicly tried the case of Feng Xiang, CEO of Zhongyan Group.

Details were posted on the court's WeChat account.

Between May 2017 and June 2021, his criminal proceeds amounted to 3.3 billion. Previously, he used various deceptive means like private equity funds, equity transfers, and employee financial management. All these methods were unapproved, prompting him to expand into new business ventures.

Firstly, he attracted funds from an unspecified audience by promising high annual returns. Later, he conceived the idea of auctions, not through legitimate channels but via illegal auctions conducted through a WeChat public account with covert operations. He assured users that after winning an auction, they could sell the item at a premium on his platform, allowing users to profit without taking on any risk. This strategy aimed to entice users.

After attracting some users, he engaged in covert operations, instructing internal personnel to participate in auctions and misappropriating funds to purchase items that failed to sell. This created a false image of frequent and stable transactions. Many investors, half in doubt, couldn't resist joining after witnessing others making real profits by buying and reselling items.

In just six months, from January to June 2021, they made a profit of over 331 million yuan through the Shanglai Auction WeChat public account platform. The number of victims was numerous, and the damage was extensive.

Engaging in illegal activities for an extended period inevitably leads to capture. On March 28, 2023, Feng Xiang found himself in the defendant's seat. The Shanghai First Intermediate People's Court conducted a public trial for Feng Xiang's fundraising fraud and illegal absorption of public deposits. The final tribunal would schedule the sentencing after deliberation.

On December 27, 2023, nine months later, Feng Xiang once again stood before the defendant's bench. This time, there was no more room for delay. The Shanghai First Intermediate People's Court pronounced him guilty of fundraising fraud and illegal absorption of public deposits, sentencing him to life imprisonment, lifelong deprivation of political rights, confiscation of all personal property, and a fine of two million yuan.

From 2017 to 2021, in just four years, he illicitly accumulated 3.3 billion yuan, causing victims to suffer losses exceeding 900 million yuan. His heinous actions did not bring him prosperity but rather a life sentence.

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