| FRIDAY JUNE 23 2000 PUBLISHED BY CHINA DAILY | |||||
| CITY NEWS | |||||
|
Rainfall at this plum rain season normal AIDS boy Peng Peng passes away Huating moves Timeshare hotel concept checks in ROK delegation here for talks China, Iran look forward to increased trade in future Bookshops turn over new leaf on piracy Survey sparks controversy Entrepreneurs warned not to neglect their studies She escapes from warring island Study abroad tempts local teenagers A passion for study overseas |
Cheat in the name of 'helping the poor' POLICE are investigating a case of fraud involving 1 million yuan ($120,000) in which a man exploited China's drive to develop the poverty stricken areas. A company from Central China's Henan Province accused the man, Lu Kai, 47, of Yangpu District, of tricking them into believing he could bring substantial investment to the country's underdeveloped region in the name of Shanghai-based American Gold Eagle International Investment Company (Gold Eagle) - a bogus company. The Henan company said Lu agreed Gold Eagle would provide $1.1 million in funding for technological development in the area after they wined and dined him, and paid travel expenses and initial investments to the tune of over 300,000 yuan ($36,000) in the spring of 1999. Lu was able to pronounce the 26 letters of the Arabic alphabet with tolerable accuracy, but he could not even sign his English alias himself. He used a seal imprinted with his English name to sign all contracts. The Henan company allege they also gave Gold Eagle 50,000 yuan ($6,000) to cover "project assessment," but once the money had been handed over, Lu skipped town. Lu was arrested on June 14. He had been on the run moving to a different location almost every two days. His seizure led to the arrest of another seven of his accomplices. Initial investigations showed Lu had defrauded over 1 million yuan ($120,000) in 22 separate cases, the victims being entities in Shaanxi, Yunnan, Shandong, Liaoning and Jiangsu provinces. Copyright 2000 by Shanghai Star. All rights reserved. |
|||