Fake bank swindles depositors out of $32 million

(ECNS) -- Nearly 200 people were robbed of nearly 200 million yuan ($32.1 million) by a rural cooperative imitating a state-owned commercial bank in Nanjing, East China's Jiangsu province, Southern Metropolis Daily reported on Friday.

In May 2014, a man surnamed Wang deposited 12 million yuan ($1.92 million) with a rural financial cooperative that promised him the same saving rates as those at state-owned banks and a weekly interest payment of two percent.

Four weeks later, Wang had not been paid the amount promised and went to discuss the issue with the cooperative, which refused to pay him interest or return his savings. Wang subsequently reported the matter to police in Nanjing.

After an investigation, it was found that the cooperative was only licensed to engage in rural information consulting and that it had no banking accreditation.

Besides the benchmark interest rates, the cooperative had also been promising clients high interest subsidies, according to the police.

This cooperative's interior decorations were complete imitations of those at state-owned commercial banks, complete with counters, LED panels and queuing machines; moreover, staff members also wore the same uniform as those in a real bank, it was added.

Police have arrested its corporate representative and three business managers. One female senior executive, who had escaped, gave herself up to custody on December 31. Two assistants to the corporate representative are still at large.