China nabs woman in suspected investment scandal

24 Jun, 2007

Police in eastern China have detained a young woman on suspicion of illegally raising 300 million yuan ($39 million) amid promises of high returns, state media said.
Dong Lixiong, 29, amassed funds from relatives and members of the public starting in May last year after pledging to deliver returns of up to 25 percent on their investments, the official Xinhua news agency said in a report seen on Saturday.
State media have said that Dong began her investment scheme after racking up business debts of 100,000 yuan in her native Jinhua city, located in the booming coastal province of Zhejiang. Xinhua, which described Dong as a "billionairess", cited a local official as saying that many investors had suffered huge financial losses and that some had even attempted to commit suicide.

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