Center Reminder
"The elderly care service center integrates tourism, entertainment, and elderly care. By participating in investment shareholding, one can receive a monthly interest return of 15%-24%." Such alluring propaganda led more than 370 elderly people to hand over their retirement funds...
The "Largest Elderly Care Center" Emerges in Liaoning
Creating the "bed shortage theory," promising monthly returns of 15%-24% interest.
"For 8800 yuan, not only can you spend your twilight years in a large elderly care service center integrating tourism, sightseeing, leisure, entertainment, elderly care, and old-age support in a picturesque area, but you can also reside in high-end hotel-style rooms."
Starting from May 2007, in various parks and buses in Shenyang city, some enthusiastic young people often appeared around elderly individuals. They were holding promotional flyers for Yilao Lin Company, promoting the "largest national elderly care center" located in Shanghai Lang Village, Hai Lang Township, Fushun County, Fushun City, Liaoning Province.
Promotional personnel introduced: "When you come to our place, we guarantee it will be better than at home. The elderly care center spans nearly a thousand acres. The company will build a large comprehensive resort-style elderly care service center that integrates tourism, relaxation, entertainment, and palliative care, with the capacity to accommodate 5000 people simultaneously. Moreover, the elderly care center will operate nationwide through chain operations, establishing branches in Hainan, Guangdong, and other places. The company promises that elders can choose to retire in southern branches during winter at the same price as in Fushun."
To convince the elderly, Yilao Lin Company arranged buses daily to shuttle elders between Shenyang city and Fushun Hai Lang Township, allowing them to visit the newly started elderly care center.
It is understood that Yilao Lin Company's business strategy was also unique: unlike previous elderly care institutions where paying a fee guaranteed food and lodging, those wishing to spend their later years at Yilao Lin's elderly care service center needed to obtain "eligibility."
In marketing, company staff created the "bed shortage theory," claiming many had already subscribed to beds; furthermore, Yilao Lin Company promised that the elderly could sell, transfer, or inherit the purchased elderly care eligibility, enticing the elderly to pay early. This marketing strategy quickly took effect, driving the price per bed from an initial 5000 yuan up to a peak of 10,100 yuan.
Additionally, Yilao Lin Company promoted to interested elderly individuals that they could participate in the company's investment shareholding, loans, and conversion of bed fees into shares, offering investors monthly returns of 15%-24% on their investments, with a yearly cycle and repayment of principal and interest upon maturity.
Retirement money went down the drain
The company concealed accounts, and the legal representative changed his name to evade punishment
In January 2010, the elderly discovered that the money they invested not only failed to yield returns but also vanished without a trace, leading them to report the issue.
The elderly recounted that the company not only held seminars but also took them to the site for viewing, and there were employees seemingly working diligently in the office. "Initially, many didn't believe it, but when they saw others benefiting, they were tempted. Crucially, they signed contracts with us, and we thought, 'Even if the monks run away, the temple remains.' With the contract in hand, we felt secure, but little did we know we'd fall into a trap..."
By January 7, 2010, Yilao Lin Company had illegally absorbed deposits totaling over 31 million RMB from more than 370 investors.
It is understood that the founder of the elderly care center was Guan Chunmao, the legal representative of Liaoning Hao'an International Yilao Lin Co., Ltd. In September 2005, Guan Chunmao registered Yilao Lin Company under the name Guan Hao'an.
On the 16th, reporters learned from the Intermediate People's Court of Shenyang that Guan Chunmao was sentenced to 12 years in prison for illegal public deposit absorption and fined 700,000 yuan. The reason for his name change was found in the verdict: to conceal his identity and evade legal punishment.
Yilao Lin Company concealed relevant accounts to cover up its crimes, refusing to hand them over. Law enforcement personnel still uncovered evidence of their criminal activities, leading to the successive criminal detention of company managers Zou Luming, Meng Hong, and Ye Mei, and Guan Chunmao being escorted back to Shenyang.
Claiming behavior was "borrowing"
Court rules it constitutes illegal public deposit absorption
During the trial, Guan Chunmao argued that his actions constituted private lending, as he merely borrowed from elders who obtained "elderly care qualifications" at the care center, not absorbing funds from society.
The court determined that the "lending" conducted by Yilao Lin Company was not targeted at specific objects, as the company had not been approved by relevant departments to absorb funds from unspecified members of the public. This behavior was both unlawful and extensive, disrupting national financial order and far exceeding the scope of private lending. It possessed significant social harm and fell within the category of criminal behavior defined by the Criminal Law.
The court ruled that defendants Guan Chunmao, Zou Luming, Meng Hong, and Ye Mei violated national laws and regulations by illegally and indirectly absorbing public deposits, disrupting financial order. Their actions constituted the crime of illegal public deposit absorption. The other three defendants were sentenced to terms ranging from six to two years in prison and fined between 400,000 and 150,000 yuan accordingly.
Judicial Warning
Don't be greedy for high returns
Beware of scams (Link)
A judge from the Second Criminal Division of the Shenyang Intermediate People's Court introduced that in recent years, some lawless individuals and enterprises have used the greed of some members of the public for high returns to conduct illegal public deposit absorption cases, which occur from time to time. Many members of the public are deceived due to unclear understanding of the concept of illegal public deposit absorption, among whom elderly people and middle-aged women predominate.
Relevant officials from the Economic Investigation Brigade of the Liaoning Shenyang Public Security Bureau analyzed that the elderly are more easily defrauded for two main reasons: one is that they cannot resist the temptation of high returns, wanting to earn more interest with their savings, thereby giving illegal fundraisers opportunities; the second is that now many elderly people communicate less with their children and relatives, often making investment decisions on their own without consulting family members, greatly increasing the likelihood of illegal fundraisers gaining their trust.
Judges remind the elderly to remain highly vigilant when discussing investment matters with strangers, not to expect "free lunches," consult with their children more often about issues, and safeguard their wallets.