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Borrow "blockchain" to attract 3.2 billion yuan in half a year! Internet pyramid schemes exposed

Time : 21/04/2022 Author : tp4f2c Click : + -
        Under the guise of "blockchain", "Internet finance", "e-commerce" and "Digital China", in just six months, the development went offline. On September 25, 2004, Lu and others, who were prosecuted by the Haizhou District Procuratorate of Lianyungang City, Jiangsu Province, organized and led pyramid selling activities, were sentenced in the second instance: the charges and principal punishment of the original judgment in the first instance were maintained. So far, the new internet pyramid scheme ended with its organizers falling into the legal net. "If you miss bitcoin, you can't miss GGP points anymore. I've only invested for two months and made tens of thousands of yuan, which is faster than the bank's money. If you don't start again, it's too late." One day in January 2016, Ms. Zhang, from Haizhou District, Lianyungang City, Jiangsu Province, went to the cram school to pick up the children home. When chatting with the teacher, she found a new investment project called "GGP win-win points". The introduction of the teacher in the cram school made her very excited, but she also wondered "is there really such a good thing in the world?"? "This is a project in Beijing. You can search the Internet and there are reports everywhere. How can you cheat?".
        Unable to resist the temptation of the introducer, Ms. Zhang paid 10000 yuan to register as a silver card member. Through the introducer's account password, there were 2000 GGP points in it. According to the website regulations, GGP points were released at a maximum rate of 3% per week to another bitcoin website for trading. Not long after, Ms. Zhang found that her GGP points appreciated rapidly on the bitcoin website. Click to withdraw, and tens of thousands of Yuan easily arrived. Ms. Zhang, who made a profit, was very happy and was preparing to introduce this project to her relatives and friends. Unexpectedly, GGP points suddenly depreciated significantly on the bitcoin website. The more she thought about it, the more she felt that it was a fraud. In March 2016, Lianyungang public security organ received an anonymous report. Lu and others promoted the "virtual currency GGP win-win points" project in Lianyungang under the guise of "Internet +", developed members through the Internet to pay membership fees, and adopted the profit model of realizing virtual points, which is suspected of online pyramid selling.
        After investigation, it was found that this was a gold fraud initiated in Beijing and covering the whole country. Since November 2015, Lu and others have operated the "global general win-win points" project on the Internet by relying on the registered global general (Beijing) Technology Co., Ltd. in Beijing. Although the company's apparent marketing direction is economic and trade consulting and enterprise management consulting, its essence is to let people earn points by spending money to register members or buying some unclaimed goods at a high price. The company determines the membership level according to the investment amount, takes 5000 yuan, 10000 yuan, 50000 yuan and 100000 yuan as the membership standard of general cards, silver cards, gold cards and diamond cards, and releases the corresponding GGP points in the proportion of 5:1 of the investment amount. For example, general card members have 1000 GGP points.
        Members with points can trade and cash their points on the domestic bitcoin line website (which has stopped running). Mr. Wang, a silver card member, trades with his 2000 GGP points. At first, a GGP point costs 5 yuan, and slowly rises to 10 yuan. But what Mr. Wang doesn't know is that behind this is the profit illusion created by global general motors (Beijing) technology company through background manipulation of the price of GGP points, so as to attract more investors. After investigation, the mysterious company and the main traders behind it surfaced. Lu, who was born in 1977, has been looking for ways to make money after graduating from technical secondary school. He has worked as a private equity fund and opened a Chinese studies class.
        In 2015, he was suspended by the Xicheng District Court of Beijing for committing the crime of deforestation. In the meantime, he still wanted to get rich overnight. He continued to know people from all walks of life and seek new investment projects through his "Di Zi Gui Cultural Institute". Soon after, he met Cheng, Yu and others. Cheng had similar product experience, Yu had technology and market, and Wang had rich social relations. They hit it off and focused on virtual currency. Subsequently, several "shareholders" led by Lu promoted the "GGP win-win points" project to develop members nationwide through the Internet, and set up a global general (Beijing) technology company to start corporate operations.
        The "company" established by Lu is not simple, including professionals who have been engaged in the financial industry, experienced people who have invested in virtual currency, senior intellectuals who serve as university professors, and "social people" who master various relationships and contacts. They have several floors of office locations in the core areas of developed areas such as Chaoyang District and Fengtai District in Beijing, with product department, office, technology department, customer service department and other departments. They regularly train employees in financial knowledge. Their finance, product, technology, public relations, publicity, market development and other departments perform their respective duties, creating a professional operation mode like a regular company. At the beginning, Lu and others continued to publicize the "GGP win-win points" project with the help of their own social relations and circles of friends, and gradually developed agents and offline across the country.
        In order to entice more people to participate, they deceived investors with non-existent project cooperation in the fields of intelligent elderly care, tourism, real estate, agriculture, industrial investment, energy and minerals, supplemented by the gimmick of "blockchain", coupled with a series of demagogic publicity documents such as "digital currency era" and "a new round of innovation in the technological revolution". Considering that "blockchain" is relatively new to most people, Lu and his group held "Internet finance" forums in some conference venues in Beijing, deceived some mainstream media to help promote it, and took advantage of the opportunity of "Digital China" to confuse the audience under the guise of the official voice. The overwhelming publicity attracted investment members, and the backstage manipulation brought high profits. Some people invested and participated, and this gold absorption organization grew rapidly.
        In this case, Yu, as the boss of his taxi company, took advantage of his extensive network to frequently forward articles about GGP and e-money in wechat groups and circles of friends. Yu himself invested hundreds of thousands of yuan, and also used his influence to continuously develop colleagues, friends and subordinates around him to participate in the investment of the GGP project, and took his offline to Beijing to participate in the annual meeting of the project. Yu himself withdrew more than 3.2 million yuan through the bitcoin website, and only Yu's offline layer had more than 10000 yuan offline. After the case was filed, the Haizhou District procuratorate set up a task force to intervene in time to guide the public security organs to investigate and obtain evidence. The case is large, the evidence is cumbersome, the number of people involved is large, and the amount involved is huge. How to characterize the case? How should many people involved distinguish the nature of their behavior? Compared with the traditional pyramid selling case, the prosecutor handling the case found that the case presented many new features: hype under the guise of "technology + Finance + commerce" and other multiple names, which was highly confusing; Operate in a corporate manner, with clear division of labor and strong professionalism; The combination of online MLM and offline MLM is highly organized; Improve the publicity platform and promote widely.
        In response to these, the case handling prosecutors closely followed the "life gate" of the case, made breakthroughs in the personnel structure, publicity content, revenue and expenditure of the company, and focused on solving the qualitative problems of the case. The procurator handling the case found through consulting the company's accounting books that the vast majority of the company's income came from the membership dues paid by the members, and only a small part of them bought goods. Even many members did not buy products at all. The essence of the company's money making lies in the number of "offline", the entry of newcomers and the membership dues paid. As of the incident, the company's book income was more than 200million yuan, of which more than 100million yuan was used for pallets, that is, speculation points created the illusion of profits for members. In addition, it was also used for publicity expenses, conference expenses, employee salaries, website development, market development expenses, return of customer investment funds, distribution of shareholder dividends, and the development of the next round of new fraud "great health".
        Some shareholders took large amounts of funds from the company. For example, Cheng cashed out 11.5 million yuan by selling hundreds of thousands of yuan of furniture to the company, Wang cashed out nearly 3million yuan by purchasing calligraphy and paintings, and Lu took 20million yuan in the name of buying real estate. By comparing the company's revenue and expenditure details and the electronic data of the MLM platform, the prosecutor handling the case confirmed that the purchase of products was under the guise of giving points, and the project revenue came from the development offline, locking in its essence of MLM. Due to the large number of people involved in the case, how to distinguish the people involved in the case, control the "criminalization" and achieve precise attack has become another difficult problem for prosecutors handling the case. "MLM organizations are usually a ‘ pyramid ’ sales model, so it is difficult to determine the organization and leadership behavior of suspect.
        Generally speaking, in addition to the lowest level salesperson, MLM personnel at other levels have certain organizational and leadership behaviors in MLM organizations. Therefore, it is particularly important to correctly understand the organizational and leadership behaviors in MLM organizations. " The case handling prosecutor said. The first is to accurately identify personnel levels. After the discussion and research of the task force, the identification of the leader's identity should be comprehensively considered from three aspects: the scope of management, the level in the marketing network, and the amount of money involved. Therefore, the case handling prosecutor divided the suspected MLM case into three levels: the initiator, the regional MLM leader, and the personnel who played a key role in the establishment and expansion of the organization. They were strictly identified as the organizer and leader according to the specific role of this role in GGP MLM activities and in strict accordance with the provisions of the judicial interpretation.
        In addition, those who did not participate in pyramid selling activities and those who could not determine the role of pyramid selling due to evidence problems were convicted in strict accordance with the law. For example, Zhu and Jiang, as direct MLM personnel, have no evidence to prove their organizational and leadership role in their personal GGP network diagram after returning the investigation. Therefore, the facts are unclear and the evidence is insufficient, so they are found guilty according to law. In the trial of the case, the Haizhou District Procuratorate made a timely decision to pursue some of the suspect found to play a more critical role in pyramid selling activities than the arrested accomplices. For example, as a shareholder of the company and one of the initiators of the GGP project, Cheng, who was granted bail pending trial, played an important role in the promotion of the project. He was the top-level personnel of the pyramid selling organization. He retracted his confession during the examination and prosecution stage, denied the large amount of money involved, and did not cooperate with the summons during the bail pending trial period. Therefore, the Haizhou District Procuratorate made an arrest decision on him according to law during the examination and prosecution stage.
        Due to the complexity of the case, the Haizhou District Court held two sessions and made a judgment at the first instance on December 29, 2018. The court of first instance found that Lu had committed the crime of organizing and leading pyramid selling activities, and sentenced him to five years' imprisonment and a fine of 1million yuan. He was sentenced to six years' imprisonment and a fine of 1million yuan for several crimes of deforestation committed by his previous crime. Other members of the organization were sentenced to fixed-term imprisonment ranging from two to six years and a fine ranging from 100000 yuan to 800000 yuan. The defendant refused to accept this and appealed on January 7, 2019. After hearing the case, Lianyungang intermediate court held that the evidence of the case was indeed sufficient. Considering that some defendants had rendered meritorious service, on September 25, the court of second instance ruled to uphold the charges and principal punishment originally sentenced in the first instance, and adjusted the amount of fines of some people, such as a fine of 955000 yuan imposed by Lu.
        Big data has warned us of the explosive and blowout growth of pyramid selling. According to the statistical judgment of pyramid selling, since the introduction of the judicial interpretation of pyramid selling cases in 2013, the number of suspected pyramid selling cases across the country has increased sharply. Today's MLM is no longer a word of mouth model in the past, but with the help of wechat, voice and video chat rooms and other social platforms, under the banner of "financial innovation", it is engaged in New MLM activities under the names of "capital operation", "consumption and investment", "online wealth management", "crowdfunding" and "charity and mutual assistance". As in this case, Lu and other six initiators decided to create the "global win-win points" project, commonly known as the "GGP" project, and built an online trading mode of virtual currency by taking advantage of the boom in e-money, but did not tell investors the truth of the false prosperity of the price manipulation behind the scenes, covering up their ultimate purpose of transferring assets.
        Nominally, they can become members only by buying products and giving points, but in fact, members only recharge and don't receive products. Members make profits from cascading investment, and then sell money to cash out on the btc100 website, creating a closed blockchain like trading mode. In order to expand their influence and raise their popularity, they once invited nearly 10000 people to hold a publicity meeting, and quickly developed a large number of members across the country through media publicity and on-the-spot promotion through the network platform and the company. MLM concepts emerge in endlessly, and the means are numerous and complex. We can only polish our eyes, recognize the essence, and remember that anyone who takes the development of head or member investment as the basis for rebate should not join.
        In addition to handling the case, prosecutors once fell into thinking, why are pyramid schemes frequently staged? The dazzling MLM items have gone from grasping people's original desire to pursue profits to creating a dream like temptation that is hard to refuse. With the blessing of success, they control people's psychological demands. As in this case, many MLM participants know that there is a wide gap between products and values, and that the continuous expansion of levels is the same as ordinary MLM, but because they are brainwashed by MLM leaders, they think they are the trendsetter and helmsman of the new global economic wave of "blockchain + bitcoin". In this regard, the prosecutor reminded that every happiness comes from reality, and every success starts with hard work. Only by being down-to-earth, pragmatic and enterprising, can we achieve our own happiness.
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