A fraudulent scheme that lured victims with promises of safe and high returns from following a "star lecturer" in stock and gold trading has been exposed, involving a fake trading platform that siphoned off over 280 million yuan. Shandong police have cracked a cross-border telecom network fraud case utilizing such a counterfeit "trading platform."
One victim, Mr. Wang from Yantai, Shandong, recounted how he was added to a WeChat group by a stranger claiming to be an experienced stock investor in late 2017. The group focused on stock trading and recommendations.
Initially, the group's livestreams covered stock knowledge and individual stock analysis. However, the hosts began showcasing their gold trading accounts, boasting daily profits of thousands to tens of thousands of U.S. dollars, and promoting the advantages of gold trading. The group owner then offered to guide followers in a gold trading wave as a gesture of appreciation.
Unlike typical investment influencers who only discuss profits, this group owner portrayed himself as a skilled, compassionate, and philanthropic "star lecturer." He frequently posted images of charitable donations to build his persona, while so-called "veteran investors" shared profit screenshots. This orchestrated buildup gradually ensnared Mr. Wang.
Mr. Wang noted that the lecturer's knowledge and stock trading concepts seemed substantial and well-founded. He was particularly moved by the lecturer's talk of using profits for charity to help those in need. Exploiting such psychological vulnerabilities, the fraudster gained complete trust, leading to the victims' downfall.
After thorough indoctrination, Mr. Wang lowered his guard and, under remote guidance, installed a precious metals trading platform software named "Chuang Lifeng Gold Industry." Unbeknownst to him, this was a tailored investment trap set by the criminal gang.
The lecturer initially suggested small profits. Later, at a critical juncture, he urged members to prepare sufficient funds and increase their capital, claiming this would be the final round. It was during this operation that Mr. Wang lost over 600,000 yuan.
Initially, the lecturer and assistants in the group comforted Mr. Wang by blaming market volatility and suggesting that topping up his account could recover losses. Mr. Wang himself believed it was a normal investment loss due to sharp market fluctuations and considered waiting before deciding on further investments. However, when the trading software became inaccessible, the WeChat group suddenly dissolved, and the lecturer and assistants vanished, he realized he had been scammed.
In 2019, after checking his bank statements, Mr. Wang discovered that his funds had not entered any international gold trading platform but had been transferred to private accounts. Realizing the fraud, he reported the case to the police.
Police analysis revealed that Mr. Wang's money had entered the reserve accounts of third-party payment companies, with daily transactions exceeding 400 times. However, due to the delayed report, the involved social media accounts were inactive, and group chats had been disbanded, leaving little evidence. A breakthrough came in 2022 when a similar case involving the "Chuang Lifeng (Gold Industry)" platform was uncovered by police in Hanchuan, Hubei.
Investigators also identified a customer service manager from the Hong Kong "Chuang Lifeng (Gold Industry)" company who was already serving a prison sentence. Evidence from the inmate's phone led to the WeChat and overseas communication software used by the fraud gang's organizers. By examining bank transaction records and analyzing the identities of key individuals through big data, a vast fraud network was uncovered.
Through joint investigation, the task force found that the main perpetrator, Yu Moubo, had been arrested in 2019 for another fraud case by Sichuan police and sentenced to 14 years in prison. Interrogations of Yu revealed the gang's organizational structure and methods.
The fraud gang had a clear hierarchy with five levels: boss, deputy, director, team leader, and salesperson. The boss liaised with the fraudulent platform, the deputy handled personnel management, the director managed team leaders posing as lecturers, and team leaders oversaw salespersons who delivered scripts in group chats. Yu Moubo, as the boss, gathered 13 individuals, including Xiong Mouqin and Xie Mou, to form the overseas-based gang targeting Chinese residents with telecom network fraud.
The gang first illegally obtained personal information online, then used WeChat to add potential victims, screening for those genuinely interested in stock investment. They were invited to stock trading livestreams and lectures, gradually brainwashing them before steering them to the fake precious metals platform for fraud.
Victims' funds were siphoned through third-party payment platforms into accounts controlled by the "Chuang Lifeng Gold Industry" platform, which then split the proceeds with Yu Moubo as agreed. Investigations showed that Yu and his accomplices defrauded 1,789 victims, causing losses exceeding 280 million yuan.
After three years of investigations and nationwide arrests, authorities successfully dismantled the criminal gang using the fake precious metals trading platform, significantly deterring telecom fraud activities.
Following a second trial by the Shandong High People's Court, all involved were punished, with main perpetrator Yu Moubo receiving a life sentence.
The court found that Yu organized and directed overseas fraud activities as the ringleader of the criminal group. Having previously committed telecom network fraud and evaded capture, he went abroad to orchestrate further crimes. The fraud amount was exceptionally large, and his crimes were severe. Although he voluntarily surrendered illegal gains and had meritorious actions, these were insufficient for leniency.
As the ringleader, Yu's crimes involved enormous sums and caused significant social harm. His incomplete confession after being apprehended for prior offenses showed a lack of remorse and hindered the investigation, warranting severe punishment.
Yu Moubo was sentenced to life imprisonment for fraud, with lifelong deprivation of political rights and confiscation of all personal property. Others, including Xiong Mouqin, received prison sentences ranging from 13 to two years and fines.
Approximately 73.81 million yuan in seized assets will be proportionally returned to the victims.
To guard against such investment fraud, individuals should verify whether "star lecturers" recommending stocks have securities investment consulting qualifications via the China Securities Industry Association website, remaining wary of unlicensed recommendations. If asked to increase investments after initial gains, maintaining composure is crucial.
In such fraud scenarios, if uncertain or pressured to decide quickly, pausing and delaying can help regain judgment. Over time, fraudsters may perceive an experienced investor and abandon their scheme.
Experts advise using official, certified platforms for legitimate investments, with funds managed through bank third-party custodial accounts. Investors should monitor fund flows via bank statements. If funds are directed to personal accounts or suspicious third-party payment platforms, immediate police reporting is essential to prevent further losses.
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