Chinese woman in $57m fraud trial

[Doctor Cynic]

Source: BBC

A Chinese woman who turned her beauty business into a multi-million dollar property empire could be executed after being put on trial for financial fraud.

Wu Ying, 28, who comes from a family of poor farmers, has pleaded not guilty to charges that she ran a pyramid scheme.

She is accused of defrauding investors of $57m (£38m) by promising returns of up to 10% but failing to invest their money properly, state media reports.

Her story has attracted much attention in China since her arrest in 2007.

Read more: http://news.bbc.co.uk/2/hi/asia-pacific/8004002.stm

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Bernie Madoff must be snickering at her, calling her a n00b.

[AlphaCentauri]

1. firing squad must be the only way to prevent fraud

Many CEOs are lucky to be in America

[bertman]

2. An Effective tool. No recidivism. But as yet untried here in the capital of capitalism.

[Baby Snooks]

3. They are indeed...

Here they are bailed out instead of denied bail and given bonuses paid for by the taxpayers to boot. Which is what we need to finally start doing to the politicians in Washington - give them the boot.

Maybe by November when it is obvious to everyone that the only thing stimulated by the stimulus were the orders for Bentleys in Manhattan everyone will finally get the message and go to the polls and vote "ABI." Anyone But the Incumbent.

[LeftishBrit]

4. Except that it doesn't prevent fraud, as the constant scandals in China demonstrate.

Strict regulation and the likelihood of being caught are far more effective deterrents than the savagery of punishment.

[AlphaCentauri]

8. Those events become scandals because they are not common

we are just used to fraud and corruption that we don't scandalize about it

[DrCory]

11. Corruption Not Common In China?

Ha! You haven't a fucking clue if you honestly believe that!

[On the Road]

12. You Think Corruption is MORE Common in the US

than in China?

The two countries are not even in the same realm:

Failure to contain endemic corruption among Chinese officials poses one of the most serious threats to the nation’s future economic and political stability, says a new report from the Carnegie Endowment.
http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=19628&prog=zch

CORRUPTION, Chinese officials often fret out loud, could destroy the Communist Party.... Yet frequent crackdowns and the occasional toppling of sleazy officials appear to have little impact.
http://www.economist.com/research/Backgrounders/displaystory.cfm?story_id=9040393

In the PRC the reforms of Deng Xiaoping were much criticized for reintroducing of corruption, as the cost of economic development.
http://en.wikipedia.org/wiki/Corruption_in_China

Wen admitted in his government work report "corruption remains a serious problem in some localities, departments and areas."
http://news.xinhuanet.com/english/2009-03/05/content_10948561.htm

[AlphaCentauri]

14. Corruption is defined by laws

what can be perceived as corruption in one country can be legal in another, for example in China it could be a felony to give money to political campaigns in the US is legal.
In many other countries lobbies are illegal but in the US are legal, lobbies could be classified as legalized corruption.

[On the Road]

16. If Your Point is That

political donations in the US are more common than bribes and embezzlement in China, it is a somewhat more debatable.

:eyes:

You are still profoundly ignorant about China.

[LeftishBrit]

13. I get a different story from my Chinese friends...

corruption and nepotism are pretty endemic there.

Also, if corruption is a rarity in China, why do we *keep* getting these stories of unsafe Chinese exports? This doesn't happen in the same way in countries where regulation works properly.

[AlphaCentauri]

15. regulations won't work properly when competition is driven by prices and quantity

not by quality

[earcandle]

5. ouroboros the snake eats it own tail.

[WriteDown]

7. That's actually an early Christian symbol...

and its not a bad thing.

[sarcasmo]

6. That is how to take care of business. Bernie Maddoff your next in the firing line.

[Vidar]

9. This would have been a better solution for Wall Street than the bail out.

[JVS]

10. Huzzah for Chinese Justice! I hope we outsource our white-collar crime control to them!