Money laundering concept. The criminal and the businessman washing money in the machines. Vector flat illustration
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After a seven-year investigation, Zhimin Qian, the self-proclaimed “Goddess of Wealth” was recently convicted in the UK of money laundering charges related to a massive Ponzi scheme in which she stole $6.7 billion from more than 128,000 people in China between 2014 and 2017. Qian portrayed herself as a sophisticated fintech innovator whose company, Tianjin Lantian Gerui Electronic Technology Co. was presented as a leading fintech business providing cryptocurrency investments as well as other investment products.
The truth is that Qian had no financial or technological qualifications and her company, which promised investment returns of up to 300% had no legitimate business operations whatsoever, but merely acted as a giant Ponzi scheme in which early investors were paid with money provided by later investors.
While she may have lacked technological and financial skills, Qian was adept at marketing to a wide variety of targeted victims including business professionals and even members of the Chinese judiciary. Her glossy promotional materials proclaimed the investments she touted were safe with guaranteed high yield investments aligned with China’s goal to become a global leader in finance and technology. The materials also highlighted non-existent projects and partnerships. In order to give the impression of government approval, Qian hosted events for investors at the Diaoyutai State Guesthouse in Beijing, a venue usually reserved for state leaders and foreign dignitaries.
Following the Chinese government implementation in 2017 of major cryptocurrency regulations including banning Initial Coin Offerings (ICOs) and the closing of domestic cryptocurrency trading platforms, Qian left China and went to the UK using a phony St Kitts and Nevis passport taking with her all her victims’ funds which she had converted to Bitcoin. She later attempted to launder the illegally gained funds through the purchase of real estate and other assets.
This case is a prime example of why no one should ever invest in anything without researching the investment, the company offering the investment and the people running the company. In addition, no one should invest in any investment that they do not totally understand.
Of course the promise of guaranteed profits of 300% should have been a huge red flag to arouse concern with any investment. Further, Tianjin Lantian Gerui Electronic Technology Co.’s marketing materials never clearly explained its business model or how the company made profits. Anyone researching the company would have found that it was not registered with any financial regulatory body such as the China Securities Regulatory Commission. As for Zhimin Qian, research would have shown she had no financial or technological degrees, licenses or qualifications.
She is awaiting sentencing.
