BEIJING — Authorities in central China on Monday announced the arrests of 234 people involved in a scam to bilk people out of their savings with the false promise of high interest rates on deposits in obscure rural banks.
The scandal drew national attention after investors seeking answers about where their money went were prevented from reaching the Henan provincial capital of Zhengzhou when the health status displayed on their mandatory COVID-19 cellphone apps was suddenly changed to red, preventing them from traveling.
Multiple bank customers interviewed by the AP said they had been interrogated and threatened by police.
Another attempt in July was met by gangs of unidentified men in white shirts who attacked depositors while police stood by.
The statement from the Xuchang city government said the alleged mastermind, Lu Yiwei, and his associates had taken control of four county-level banks and lured investors with promises of interest rates as high as 18% annually.
“At present, the public security organs have apprehended a large number of criminal suspects, among whom 234 were arrested,” the statement read.
“Significant progress has been made in the recovery of stolen goods and damages. The investigation and handling of the case is being carried out in depth according to the law.”
The statement said the originators of the scheme who later “absorbed” the funds had talked up the investments to other people who deposited hundreds of thousands of dollars, giving the…
