Another Chinese MLM Operator Goes Bust, Told Investors He Donated 9,000 Trillion to Govt

Yishangtong (易商通) is a firm that describes itself as an E-commerce giant:
E-Commerce is a group company with both traditional physical industries and internet platforms. The innovation drive is the source of the development of E-Commerce, actively embraces the Internet, reorients the development direction of the company with the Internet, and uses Internet tools to complete the industrial upgrading of the company. It is an enterprise group that proposes and practices the concept of integrating online and offline businesses. . E-Commerce Group has a strong sense of mission at the beginning of its involvement in the Internet industry. It is necessary to use practical actions to lead the Chinese real economy + the Internet, change the trend of the Internet giants to subvert the real economy, and clearly put forward the idea of ​​creating a civil ...
Critics say it is an multi-level marketing scam and possibly a Ponzi scheme.

iFeng: 易通商爆雷!董事长曾自称向国家捐款9000万亿
In an interview with Fenghuang.com, senior Xu Xu, a senior anti-MLM microblogger, stated that the e-Commerce business model is in line with the basic characteristics of MLM, namely, the absorption of investment, rebates, development of the offline, and the existence of suspected MLM or illegal fund-raising. The anti-trafficking coalition of non-governmental organizations also told Fenghuang Finance that the E-Commerce model is similar to the police's consumer rebates platform suspected of illegal pyramid schemes.

It is worth mentioning that some investors have reported that Gao Zhihua has sung a deposit bill with a China Construction Bank amounting to 9 trillion yuan in a circle of friends. According to a video obtained by Fenghuangwang Finance, the chairman of the company, Gao Zhihua, said: “I also prepared a huge sum of money for the next step of the Yishang Investment. How much money have I donated to the country? 9,000 trillion. The country has given me The reward is 20%. So really, I'm the richest person in the world."

Recently, Fenghuangwangjing visited the company headquarters of Yishangtong in Beijing Daxing District Zhongdian Jinyang Science and Technology Park and found that the company is still in normal operation.
The company stopped returning investor money in April:
Stop cashback in April

From April 14 this year, Yishang suddenly stopped cashing back investors who had already joined the meeting.

According to an e-Commerce red paper obtained by Fenghuangwang Finance, the company has already started the Tianyi Mall project to increase capital and expand shares, with an initial equity capital of RMB 20 billion. "Considering the consistency of operations, as of April 14th, the new consumption format will be suspended every week. If you do not choose to replace the original shares of Tianyi Mall, all consignment income will return to you within three months."
The company said it had a lot of work to transfer the 20 billion yuan:
A screenshot of the WeChat group provided by investors shows that Yi Shangtong’s chairman had been so reassured by investors: “This strategic transformation needs to cash more than RMB 200 billion, and lawyers and I conducted in-depth discussions. According to rules and regulations, such large funds will be transferred from public accounts to private accounts. How to handle tax revenues and how to deal with the bank's regulatory issues? These all require wisdom. I have a lot of work."

A screenshot sent to her by a friend known to Yi Shangtong in the Xuzhou area shows that the company promised to return the full amount before July 30 for investors who joined before April 14.

However, a number of investors have reported that the time frame for all cash rebates since April has been delayed. Therefore, Chen Xue is still very worried. “This is a month left to see if they will return.”
The company tried to get investors to convert assets into shares to avoid a payout. Those who demanded payment were told they can never invest with the company again:
E-Commerce also stated in the red-headed document that investors can convert the remaining balance remaining in the account into the original shares of Tianyi Mall in a 1:1 ratio. The two Yishantong investors that Fenghuangwang Finance met at the door of the company’s headquarters all said that they have already subscribed for a portion of the original shares. For this practice, Li Ji believes that the purpose of the company is to prevent the outflow of funds and prevent the July 30 premise of the excess investors, resulting in the fracture of the capital chain, so use the original stock way to continue the investors' money on the platform on.

For special circumstances, Yishangtong also stated in the red-headed document that “after verification, it can be returned in one-time, but this member will be blacklisted and will never be allowed to enter Yishangtong’s related projects”. Chen Xue told Phoenix Net Finance that her other relative had been in urgent need of money to buy a house. She applied to Yi Shangtong to apply for cash back in advance and was told that he would not be allowed to invest in Yi Shangtong again.
The company repeatedly turned to Weibo to calm investors:
uring this period of time, the company continued to publish information in the WeChat group of investors, stabilizing people's hearts. “It's the brainwashing stuff,” Chen Xue said. In Baidu Post Bar's “Easy Trading”, someone called everyone to “wake up and get up”. Some people are worried about asking “Why are the media are exposing E-Commerce”? Some people believe that E-Commerce Express will immediately honor Promised."
Those who raised questions about the company were targeted:
Among them, those who question Yizongtong in the Post Bar and WeChat group will be called "negative energy," and they need to be targeted. In a WeChat group called "Class 1 of Yijuntong Group Buying Service", someone posted a "negative energy" contact, saying "Can't let him break the reputation of our company." Others disclosed the contact information of a reporter who had reported Yi Shangtong, saying that "I had just learned to use the telephone to learn a lesson," and called on other people to "call and criticize this person".
The most absurd claim is the CEO saying he donated 9,000 trillion yuan (US$ 1.4 quadrillion) to the government.
Chairman's donation of 9,000 trillion to the country

The reason why Chen Xue joined E-Commerce is because her aunt has joined the club since 2016, and she is “convinced” to E-Commerce. She has long recommended to her and her husband, and often sends Chen Xue the daily necessities bought in the E-shop. Chen Xue said, “I don’t have any income at home and my husband’s income is very low. My aunt also wants to help us. I think this can make money. I believe in it over time.”

Some investors said that E-Commerce has used a variety of propaganda and even "brainwashing" methods to strengthen the trust of its members. Several investors told PhoenixNet Finance that I, or my family members and friends, had participated in the e-Commerce organization training. In addition to a business school that specializes in training at its headquarters in Beijing, E-Commerce also regularly holds lectures and other activities in other parts of the country.

You can see the CEO Gao Zhihua speaking to one of these groups on the company website. He also has a fake deposit slip he shows to investors to prove he donated the 9,000 trillion yuan.
In addition, Yi Zhitong, Chairman of the Board of Directors, Gao Zhihua also has excessive self-promotion. In the article on the June 25th anti-passing alliance, a copy of China Construction Bank’s deposit slip that Gao Zhihua had sung in a circle of friends was exposed. The deposit slip shows that “On January 28, 2018, we hereby certify that Gao Zhihua has savings deposits or voucher bonds (capital) in our bank: RMB 玖仟 柒 柒 柒 柒 捌 捌 叁仟 叁仟 叁仟 叁仟 叁仟"Luo Lu picked up Lu Wanwu and picked up the yuan." (ie 9077708833665421.12 yuan) The bottom right corner of the deposit slip is covered by the official seal of the China Construction Bank Co., Ltd. Beijing Qianmen Branch.

He claimed the 9,000 trillion came from overseas Chinese and the government gave him a 20 percent fee for bringing the money back:
According to a video obtained by Phoenix.com, one person who is in line with the president of the company’s official website, Gao Zhihua, said: “The Internet is a capital outflow. I’m moving the Chinese nation’s patriotic overseas Chinese’s money to China. Then I’m the first to move back. Is 9,000 trillion."

“I also prepared a huge sum of money to invest in Yi Shangtong's next-generation Tianyi. How much money I donated to the country, 9,000 trillion. The reward that the country has given me is 20%. So it’s real, I’m It is the richest person in the world. " The person said.
...For the video and certificate of deposit, Fenghuangwang Finance seeks evidence from Yishangtong as an investor. The company’s customer service staff said: “I haven’t said this 9,000 trillion, but it is not the range that we consider. If there are problems, they can go The department reported that there is no problem. They do not need to create this momentum."

The China Construction Bank official website released on April 26, the first quarter of 2018 results show that as of March 31, 2018, China Construction Bank's total assets of 22,848,740,000,000 yuan, an increase of 724.357 billion yuan over the previous year, an increase of 3.27%. According to an article from the Anti-Tribune Alliance, “China Construction Bank’s total assets in the first quarter of 2018 were only about 22 trillion yuan, and Gao Zhihua himself had 9,000 trillion in deposits at the bank on January 28. Such a wicked trick is ridiculous.
If you notice the links above to the company website, it uses a bunch of numbers. Many Chinese websites use the first pinyin letter of their name as well as numbers, but it looks like this company must have many websites with strange addresses:
Phoenix Internet Finance finds the official website of e-commerce (www.sht315.com) via Baidu search. After clicking on the page, it is redirected to the e-shop.com page and cannot log in to the official website. Fenghuangwang Financial calls the E-shop customer service phone to find out the reasons. The staff provides another website for direct login to the official website (www.2012-12315.com).

Fenghuangwang Finance Inquiries on this website found that the domain name has been evaluated by the Shanghai Public Security Bureau's counterfeit website identification service website as “the website is not credible and is not recommended for access”. In addition, some netizens have asked if the website is reliable at the online trading protection center. The online trading protection center replied that “internet investment and wealth management are at risk. We have received many similar complaints, and the police have issued police and civilian tips, suggesting not to believe in lucrative returns. Said."

Lawyers and consumer advocates say MLM operators are disguising their scams as e-commerce:
Zhao Occupy of the China Internet Association Credit Rating Center’s legal advisor Zhao Zeng once stated in an interview that the full amount of rebates is equivalent to consumers buying goods at high prices, and merchants borrowing money from consumers using goods, and the goods themselves are equivalent to interest. The use of MLM methods to allow consumers to pull their heads and develop downline rebates is "the greatest harm, but also need to focus on the fight," "There are some companies known as a new type of e-commerce model, in fact, is a variant of MLM."

Wuzheng Law Firm lawyer Wu Zhenglong explained to PhoenixNet.com, if you want to make a legal statute on Easycom, you may be involved in two charges. According to the Supreme People’s Procurement and Supervision Ministry’s Regulations on the Prosecution of Economic Crime Cases, the unit illegally absorbs or disguisedly absorbs public deposits, amounting to more than one million yuan and involving more than one hundred and fifty people, creating a direct economy for depositors. Losses equal to or more than RMB 500,000 may constitute the crime of illegally assuring public deposits; the number of organizations and leaders participating in MLM activities exceeds 30, and levels above the third level may constitute the crime of organizing and leading MLM activities. Wu Zhenglong said that in actual operations, many cases of illegal fund-raising will also include the characteristics of member levels and pull people's pyramid schemes.
The reporters from Phoenix Online found the copmany selling goods at a 500 percent markup.
Phoenix Cyber ​​Finance found at the headquarters supermarket that the price of the product of Easy Book Mall is generally much higher than that of the same type of products on the market. For example, a Kudzu powder product sold in the easy store, 400 grams of a box of the price is 258 yuan, while the same weight of Pueraria powder products on Taobao, the price is almost below 50 yuan.
Investors who lost hundreds of thousands of yuan in other scams thing Yishangtong is "too big to fail."
Fenghuangwang Finance asked the investors who went forward to pick up the goods from the headquarters in the name of joining the meeting. The other party said that “E-Commerce is really good”. Previously, he had already lost hundreds of thousands of dollars from Cloud Trade, another rebate platform, but the investor told Fenghuang Finance that “E-Commerce is so large that it will not collapse”. Cloud Trade has been identified as a typical MLM by the Ministry of Public Security in September 2013.

...Wu Zhenglong said of members with this kind of mentality, "All investors feel that they will not be the last one when the music stops."

Xinhua.net published an article quoting Yishangtong CEO Gao Zhihua back in January.

Xinhua: 易商通:搭建共享平台 引领分享经济
Recently, Gao Zhihua, chairman of the E-Commerce Global Holdings Group, said in an interview with reporters that in the current era of Internet of Everything, the Internet should evolve into a fool tool, and any individual and company can easily manage this tool for themselves. Our company has a 10-year plan, a shared platform for the first five years, and a shared economy for the next five years.

  Gao Zhihua said that in the new round of scientific and technological revolutions and industrial changes in the world, the integration and development of the Internet and various fields has broad prospects and unlimited potential, and it has become an irresistible trend of the times. The Internet tool should serve all humanity. Everyone should share the dividends that Internet technology has brought to humanity. However, the current situation is that the combination of a few people who understand Internet technology and offshore capital has subverted the traditional business opportunities and caused many operators in traditional industries to lose their original business opportunities, and they do not know how to capture new business opportunities after the Internet forces everyone to make a transition. So everyone feels business is bad. In short, a few people have enjoyed the dividends of the Internet development. Most people are too anxious to do anything.
In April, 直销网 or "direct marketing website" warned about the company.

直销网: 为什么我们要对易商通发出风险预警
Why do we need to include Yi Shangtong on the list?

  Anti-MLM Network, Anti-Transmission Alliance, and Anti-Movement Manager are currently self-media platforms owned by Fuzhou Juyou Network Media Co., Ltd. and were founded by a private anti-mutual marketing agent, Ling Yun. They have been advocating the prevention and marketing of MLM in the past 12 years, through phone calls and the Internet. Users from all parts of the country are invited to consult and answer related questions such as pyramid schemes and illegal fundraising, and through the collection of information on various platforms, early warning information is issued to financial scams that are suspected of pyramid schemes or illegal fundraising. These tasks have always been our work responsibilities and social responsibilities. The large amount of work we do has been highly recognized and supported by functional departments at all levels and social media. At the same time, we have also benefited many families, making them understand the MLM and scams and prevent them from being scammed. Defrauded.

  E-Commerce has been listed on the early warning list with full factual basis, and it is also a summary of the work that we received from a large number of consultations, reports, and complaints. The following figure (part of the complaint information display):
They used high rebates/returns to pull in investment:
E-Commerce's model shows that six ministries and commissions jointly warned the "consumer rebates" risk
  E-Commerce, under the guise of “military innovation,” uses the so-called “consumer new format + localized consumption + Pratt & Whitney e-commerce consumer pension program that is about to detonate the market” as the slogan, under the guise of “consumer capital theory,” declared Investment 5000 can earn 8,000, and there is a general situation where one person invests hundreds of thousands of dollars. There is a very high financial risk, suspected of pyramid schemes and illegal fundraising.

....After investigating the business model of Yishangtong Monopoly Mall, there was a behavior of consumer rebates. Online and offline malls were used to absorb members for high rebates. The company promised to invest RMB 5,000 in members and return RMB 8,000 in 10 months, and it was suspected of illegally raising funds.
Admissions Rewards Program
Entrusted by the training center of the Ministry of Commerce of the People's Republic of China, China E-Commerce (Group) Co., Ltd. has established an e-commerce training course aimed at cultivating (reserving) more e-commerce talents for China and creating more middle classes. Divide the worries for the government, do a good job of laid-off and re-employment, college students choose jobs, resettlement of military personnel, urban and rural Internet docking four major projects.
  After the training of the training center of the Ministry of Commerce, through the qualification test for the 'E-Commerce Division', a certificate of completion is issued by the Ministry of Commerce and the certificate is accepted.
  E-commerce training fees:
  The primary class training fee is 10,000 yuan (free use of cloud shopping website)
  Intermediate class training fee 20,000 yuan (grant cloud shopping site operating right)
  Advanced class training fee 40,000 yuan (Gift cloud shopping site operating rights and logistics service center)

  Admissions Reward Scheme (Bonus System):
  First, the direct enrollment award: 10% of the enrollment amount;
  2. Proportional Award (Balanced Prize): Two markets form Belgium, taking 10% of the district's performance;
  3. Management Award: Take 100% of the direct recommender's proportion award;
  Fourth, the top 180 shareholders (when your team's total performance reaches 1 million), have a 1% weighted bonus on total performance.
  V. Withdrawal mechanism: On the premise that there is no income within six months, the seventh month will be refunded at 10% of the cost of your enrollment training until the 1.5-time contract is terminated:
  6. 5% of the overall income as personal income tax is deducted directly by the company; 5% of the overall income is used as a mutual aid award (as a reserve of 1.5 times the return principal); 5% of the total income is issued as a cumulative monthly basis.
  In order to better unify ideas, unify goals, unify wills, and unify actions, starting from mid-October 2012, China E-Commerce (Group) Co., Ltd. and China Welshwin (Beijing) Investment Fund Management Co., Ltd. will have plans and steps. A student recruitment conference was held at the training base of the Ministry of Commerce to recruit people with lofty ideals from across the country. Training, education, and promotion of recruiting students. Through training, a group of management talents, network professionals, enterprise consultant talents, and logistics management talents who meet the needs of e-commerce businesses will be created. At the same time, the company will also expand its diversified business development channels so that more people will use the “cloud shopping” website as their own business and give autonomy, hope and glory to everyone who loves life and strives hard.
  My colleagues, fellows, and friends expressed our applause for the e-commerce carrier E-Commerce China Merchants “Cloud Shopping” China’s first consumer portal, which is in line with national conditions, in line with people’s conditions, and advancing with the times. Germany and work hand in hand to fight for the better tomorrow of e-commerce in the Chinese nation!

  Making progress against MLM is difficult, there are many problems

  In recent years, the rapid development of online MLM has made it possible for various names to be covered, and tens of thousands of MLM companies use the registered company as a cover. And pyramid schemes and illegal fund-raising, anti-trafficking network as a folk anti-trafficking force, propaganda, education, popularization, exposure, early warning and other work pressure, face tens of millions of MLM staff, tens of thousands of MLM companies Our strength is extremely weak.
  In the past two years, in the face of our early warnings, MLM organizations have often launched millions of members to conduct public opinion attacks on the anti-MLM networks and anti-transmission alliances. In the name of "walking dogs, traitors, sabotage of ethnic enterprises, extortion, extortion, triads, and foreign forces..." various attacks and black texts are overwhelming on the Internet. Those ignorant MLM fanatics do not have basic judgment. Take the rumors.
  In addition to public opinion attacks, various lawyer letters and indictments have come. In the face of fraudulent companies with strong economic strength, they have a strong team of lawyers, and our weak powers are deeply inaccessible.
  In addition, there are all kinds of threats to the use of evil forces, tracking, MLM companies can actually get 400,000 to find the underworld, the purpose is to let us stop exposing the nature of their MLM fraud. Their case outcome proves that they are indeed a bunch of fraudsters and that hundreds of thousands of people have been defrauded for everything! And our weak power must be careful for the safety of the family!
  Cracking down on pyramid schemes and cracking down on illegal fund-raising is a difficult task. People's greed, people's ignorance, people's incomprehension, people's non-common sense, people's gambler psychology, people's riches and fantasies... Let the crooks have fertile soil for survival and growth. The government is deeply fatigued. We are even more exhausted. We have persisted for 12 years in the face of pressures and difficulties. We will continue to do this thing. We are always yelling: Far away from MLM and away from illegal fundraising requires the participation of the whole society!

No comments:

Post a Comment