Funding gap! Shanlin Finance illegally raised 73.6 billion yuan, involving more than 620,000 people nationwide.

　　CCTV News:On April 9, 2018, Zhou, the actual controller of Shanlin Shanghai Financial Information Service Co., Ltd., came to Pudong Branch of Shanghai Public Security Bureau to surrender to the public security organs. Zhou worked as a real estate project company in Tianjin before, but his business situation was not very good.

　　Criminal suspect ZhouAfter the real estate loan was completed, the money was used for investment, and the large amount of money for road construction could not keep up. Later, the P2P platform was opened to exaggerate the facts to do this.

　　After investigation, since October 2013, the criminal suspect Zhou has organized free travel through advertising and telemarketing without the approval of relevant departments, with the promise of high interest ranging from 5.4% to 15% as bait, selling so-called debt transfer wealth management products to unspecified people in the country.

　　Criminal suspect Zhou: offline stores absorb funds quickly, so they desperately open stores.

　　In a short time, the suspect Zhou set up 1,120 branches and offline stores in 29 provinces, municipalities and autonomous regions across the country, recruiting more than 30,000 employees. After investigation, many projects are false, and these stores are very attractive to investors after luxurious decoration. Since February 2015, the suspect Zhou has transferred some of his business to the online business, and has set up four online investment and wealth management platforms. Similarly, the sales of fictitious wealth management products with the promise of repaying the principal and paying high interest as bait raised 2 billion yuan in just two months.

　　Lin Zhi, Team Leader of No.1 Team and No.2 Team of Economic Investigation Corps of Shanghai Public Security Bureau: "His advertisements are very large, including on subway cars and buses. And even made it to the big screen of Times Square in new york, USA. At the same time, he also funded some charitable projects and sports events to show investors that he is strong. "

　　The target customers of Shanlin Financial offline stores are mainly middle-aged and elderly people, while the target customers of online platforms are mainly young white-collar workers. After investigation, at the peak of operation, Shanlin Finance absorbed 70 million yuan of new investment every day. Accumulated illegal absorption of public deposits of more than 73.6 billion yuan, however, the proportion of these funds actually used in projects is less than 5%.

　　Criminal suspect Zhou: The enterprise projects invested by the company have no hematopoietic function and cannot bring stable returns to investors. We can only maintain the operation by borrowing the new and returning the old, and the capital chain may break at any time.

　　According to the criminal suspect’s confession, Shanlin Financial needs at least 500 million yuan per month to maintain the company’s operation, which is mainly used for operating costs such as repaying principal and interest to previous investors, employee commissions, renting luxury office space, paying advertising fees, and personal extravagance. At the time of the incident, Shanlin Finance had a huge funding gap, which made it impossible to pay the investor’s principal totaling more than 21.7 billion yuan, involving more than 620,000 people across the country. At present, the case is being further processed.