20 to be indicted in $860 mln financial scam

Twenty people have been transfered to the procuratorate and are to be indicted in north China's Hebei Province for a 5.39 billion yuan (862 million US dollars) fundraising scam, local authorities said Sunday.

A total of 36,000 people across the country claimed that they invested 5.39 billion yuan in the illegal fund-raising scheme by HJJGold Investment Group based in the city of Langfang, the city government said in a press release.

The group, which claimed to have more than 3,000 outlets nationwide, promised high returns for gold investment and bank saving-like wealth management products.

Local police launched an investigation in September last year as the group was found to be allegedly involved in absorbing public savings.

Twenty suspects, including the owner of the group, were officially arrested in early November.

The owner and his relatives used some of the funds on huge purchases of houses and luxury cars.

By Saturday, local police have frozen 2.8 billion yuan funds, seized 489kg gold products, 231 kg silver products and 66 cars, and sealed up 191 houses and 210,000 square meters of land with the group.