The Ministry of Justice has issued new warnings against a massive and fast expanding fraud scheme across the Taiwan Strait to bilk money from gullible citizens.
MOJ officials said they have visited law enforcement authorities in Nanning City of mainland China’s southern Guangxi province for a joint crackdown on a financial scheme dubbed as the “Nanning scam.”
A syndicate formed by mainly Taiwanese fraudsters has used Nanning as its operation base to conduct a scam which involves recruiting investors with promises of offering quick and lucrative profits of about NT$30 million in just two years from capital investment of NT$330,000.
Members of the group first solicit participation in various travel programmes to Nanning by residents in Taiwan.
They then arrange presentations on investment prospects and marketing pitches conducted by retired mainland Chinese judges and police officers hired by them.
The scam artists use statements from Chinese leaders like Jiang Zemin and Hu Jintao as well as celebrities to mislead, making people believe profits from their capital investments were guaranteed by Chinese authorities.
MOJ officials said the group’s operations have violated several laws governing illegal activities stipulated in the Criminal Code, fair trade, direct marketing and banking regulations in Taiwan.
The practice is also outlawed in China, they said.
After holding two coordination meetings in Nanning, investigators and prosecutors in Taiwan have already detained several members of the organisations.
Officials said a crackdown on the Taiwanese and Chinese fraudsters involved in the “Nanning scam” will continue.
People should remain vigilante and resist the temptation to believe investment opportunities that are simply too good to be true, they said.