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Court sentences 24 to jail for defrauding 230,000 investors of nearly $1.5bn

A court in Guangzhou has sentenced 24 people at Guangdong Bangjia Leasing Co to jail terms for defrauding 230,000 investors of almost RMB10 billion (US$1.5 billion) through wealth management products promising annual returns as high as 47%, The Financial Times reported, citing state media. The court froze and seized assets including 43 villas and 127 vehicles, but prosecutors said there was little chance of victims – primarily senior citizens who had invested their life savings – getting their money back. The case is the latest scandal to hit China’s loosely regulated wealth management products sector, which often targets retail investors with little investment experience.

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