Beijing News (reporter Tian Beibei) An insurance company employee, Che Shoufeng, after discovering the pyramid selling operation mode of a training website, registered as a member and promised that members who develop subordinates would receive rewards such as cash, real estate, etc., attracting more than a thousand college students to join the pyramid selling network. Recently, the court sentenced Che Shoufeng to 4 years in prison for illegal business operations and fined him 100,000 yuan.
An insurance company employee becomes a pyramid selling member
It is understood that Che Shoufeng was born in 1974 and originally worked for an insurance company. In early 2004, he logged into a foreign website through a proxy server and saw that the "Xinzhi Training Network" established by Singapore's Chengzi Group claimed that after registering as a member, one could spread the website's business model to others, attracting others to join, allowing the upline to make money. Che Shoufeng believed that this website's pyramid selling model was a shortcut to wealth, so he registered as a member.
According to the regulations of the "Xinzhi Training Network," the annual membership fee is 1230 yuan, the three-year membership fee is 2380 yuan, and the ten-year membership fee is 4680 yuan. The upline earns 150 yuan for introducing each annual member, 300 yuan for introducing a three-year member, and 600 yuan for introducing a ten-year member. Afterward, when subordinates recruit new members, all the uplines on that line can earn points. Che Shoufeng said that when the subordinate's points reach a certain proportion, the upline can earn additional profits, obtain BMW cars and high-end housing, and even receive the company's original shares.
Established a consulting company to attract students
In order to absorb more subordinates, in November 2006, Che Shoufeng conducted investment, finance, and entrepreneurship training for some college students under the name of the "Xinzhi Training Network." During this process, Che Shoufeng attracted many university students to pay and become members with promises of high returns. In early 2007, Che Shoufeng also established Deren Educational Consulting Service Co., Ltd. Many students came for consultation, saw Che Shoufeng's promotion, and paid to register as members. However, some of these students only joined with the purpose of entrepreneurial learning and did not further recruit subordinates.
A university student reported the man
It is introduced that under Che Shoufeng's username, a total of 1259 members were recruited, all of whom were college students from universities in Beijing and other places. A student from the University of International Business and Economics came from a poor family, so Che Shoufeng paid his annual membership fee for him. Thereafter, this student became Che Shoufeng's assistant and recruited several classmates to join.
Agricultural University student Xiao Li also joined as a member, but after attending a few classes, Xiao Li felt it was illegal pyramid selling, so he joined other classmates to report it. At the end of 2007, Che Shoufeng was controlled by the police. Last September, Che Shoufeng was prosecuted on suspicion of illegal business operations.
The court believed that Che Shoufeng's pyramid selling activities lasted a long time, and most of the targets were college students, causing extremely adverse social effects. Accordingly, Che Shoufeng was sentenced to four years in prison for illegal business operations and fined 100,000 yuan.
It is understood that currently, the "Xinzhi Training Network" has been blocked within China and cannot be accessed anymore.