Chinese health product company fined for pyramid scheme

Chinese health product company Quanjian was fined 100 million yuan (around 14.4 million U.S. dollars) for organizing and leading a pyramid scheme, according to a court in north China's Tianjin Municipality on Wednesday.

Shu Yuhui, the founder and chairman of Quanjian Nature Medicine Technology Development Co., Ltd., was sentenced to nine years in prison and fined 50 million yuan, said the People's Court of Wuqing District of Tianjian.

The other 11 defendants were also sentenced to prison ranging from three to six years and fined.

All defendants pleaded guilty, said the court.

The Tianjin-based healthcare product maker and the 12 individuals had been accused of organizing and leading a scheme that used false advertising to cheat thousands out of their savings by selling health products.

Chinese authorities launched a nationwide campaign to crack down on irregularities in the health product market after an investigation into the Quanjian case started in December 2018.

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