Pyramid schemes tip of the cy-berg

• Source: The Global Times
• [08:05 May 21 2009]
• Comments

Pyramid schemes still prevalent

Chen, the APSO official, said he is writing a book to dissect the trickeries of the scheme. “Pyramid schemes are mainly targeted at university students, laid-off workers and migrant workers, because they lack the awareness of self-protection and want to make quick money.”

Liu Min, an official with the State Administration for Commerce and Industry, told the Global Times that more than 10,000 people are currently involved in pyramid schemes in Liaoning Province, and the figure was about 200,000 a few years ago.

“It’s difficult to sue the organizers of the pyramid schemes, because it’s hard to collect evidence, as their networks are often complicated in structures,” said Lu Junxiang, lawyer of Beijing Dongwei Law firm. “Also, corrupt local officials sometimes get in the way of the investigation.”

Power of the Internet

Professor Wang Xiaoming from the Beijing Union University told the Global Times that because the Internet is swifter in disseminating information than traditional media, people now prefer the Internet for exposing official corruption and red tape.

“Online postings sometimes can provide useful clues to the police,” Lu said. People turn to the Internet for help “because they think it is more effective to catch the attention of relevant officials and hope it can help solve their cases.

“Such phenomena reminds us that there may be some problems in conventional channels of reporting in China,” he added.

Guo Qiang and Wen Yufang also contributed to this story