Text: Yang Zhanchang Zhang Yuzong Shen
Source: Procuratorate Daily
In the "blockchain", "Internet finance", "e-commerce" and "digital China", in just 6 months, the company has developed 30 floors, absorbed more than 10,900 member accounts, and absorbed 320 million yuan of investment… On September 25, 2019, Lu Mou and others who filed a public prosecution by the Haizhou District Procuratorate of Lianyungang City, Jiangsu Province, organized and led the second instance of the pyramid scheme: the verdict and the principal sentence of the first instance were maintained. At this point, the new Internet marketing scam has ended with its organizational personnel falling into the French Open.
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GGP points are popular for 6 months nationwide
"I missed Bitcoin, you can't miss GGP points anymore. I only earned tens of thousands of dollars in two months. This is faster than the bank. It's too late to start." One day in January 2016, Lianyungang, Jiangsu Province Ms. Zhang from Haizhou District went to the tutoring class to pick up the children and went home. When chatting with the teacher, she found a new investment project called “GGP Win-Win Points”. The introduction of the tutoring class teacher made her very excited, but she I also have doubts, "Is there such a good thing in the world?" "This is a project in Beijing. You are reporting on the Internet. How can you lie?" The temptation of the introducer was forbidden. Ms. Zhang paid 10,000 yuan to become a member of the silver card and passed the account of the introducer. Password, which has 2000 GGP points, according to the website, release GGP points to another Bitcoin website for trading at a maximum of 3% per week. Not long after, Ms. Zhang found her GGP points on the Bitcoin website. On the rapid appreciation, click on the withdrawal, tens of thousands of dollars easily arrived. Ms. Zhang, who is profitable, is very happy and is preparing to introduce this project to her relatives and friends. I did not expect that GGP points suddenly depreciated on the Bitcoin website. The more she wants to think, the more she feels this is a scam.
In March 2016, the Lianyungang Public Security Bureau received an anonymous report. Lu Mou and others promoted the “Virtual Money GGP Win-Win Points” project in the Lianyungang area with “Internet +” as the scorpion, and paid membership fees through the Internet development membership, and adopted virtual credits. Realized profit model, suspected network marketing.
After investigation, it was discovered that this was a scam that originated in Beijing and covered the whole country. Since November 2015, Lu Mou and others have relied on the registered Global Vision (Beijing) Technology Co., Ltd. in Beijing to run the “Global Universal Winning Points” project on the Internet. Although the company’s marketing direction is economic and trade consultation and Business management consulting, etc., but the essence is that people can earn points by spending money to register members or buying high-priced products that are not claimed. The company determines the membership level according to the investment amount, with 5,000 yuan, 10,000 yuan, 50,000 yuan, 100,000 yuan as the membership standards of Puka, Silver, Gold and Diamond cards, and the ratio of investment amount is 5:1. Release the corresponding GGP points, for example, Puka members have 1000 GGP points. Members with points can trade their points on the BTC100 website of the domestic Bitcoin online trading platform (now stopped). Silver card member Mr. Wang used his own 2000 GGP points to trade. At the beginning of a GGP score, he had to pay 5 yuan, and slowly rose to 1 point and 10 yuan. But what Mr. Wang didn’t know was that behind this Global GM (Beijing) Technology Company has attracted more investors by joining the illusion of profit generated by the GGP price in the background.
Under the guise of "blockchain"
After investigation, this mysterious company and the main trader behind it surfaced. Lu Mou, born in 1977, after graduating from secondary school, he constantly sought the road to making money, worked as a private fund, and opened a national school class. In 2015, he was sentenced to probation by the Xicheng District Court in Beijing for committing deforestation. In the meantime, he still thought about getting rich overnight, making charity through his own “Disciplinary Culture Institute” and constantly knowing people from all walks of life to seek new investment projects. Soon after, he met Cheng, Yu, and others. Cheng had a similar product experience. In a certain technology market, Wang had a rich social relationship. Several people hit it off and stared at the virtual currency. on.
Subsequently, several “shareholders” led by Lu Mou used the Internet to promote the “GGP Win-Win Points” project development nationwide and set up a global (Beijing) technology company to start the corporatization operation. The "company" set up by Lu Mou is not simple. There are professionals who have worked in the financial industry, experienced people who have invested in virtual currency, senior intellectuals who are university professors, and master relationships and connections. "Social people" and so on. They have several floors of office locations in the core areas of developed areas such as Chaoyang District and Fengtai District in Beijing. They have departments, offices, technical departments, customer service departments and other departments to regularly conduct financial knowledge training for employees, their finances, products, The departments of technology, public relations, publicity, and market development have all performed their duties, creating a specialized operation model like a formal company.
At the beginning, Lu Mou and others used the team's own social relations and circle of friends to continuously promote the "GGP win-win points" project, and gradually develop agents and offline in all parts of the country. In order to incite more people to participate, they cooperate with projects that do not exist in the fields of intelligent pension, tourism real estate, agriculture, industrial investment, energy and minerals, supplemented by the “blockchain” and “digital currency”. A series of confusing propaganda and copywriting, such as the "new round of innovation in the technological revolution", defrauded investors' trust. Considering that the “blockchain” is relatively unfamiliar to most people, Lu’s group held “Internet Finance” forums at some conference venues in Beijing, deceiving some mainstream media to help promote and use “Digital China”. This opportunity, the official voice to confuse the audience.
The overwhelming publicity brought in investment members, and the back-office manipulation brought high profits. Some people invested and participated, and this fund-raising organization developed rapidly. In this case, Zou, in his capacity as the owner of a taxi company, used his extensive network of contacts to frequently forward articles on GGP and e-money in WeChat groups and friends. He has invested hundreds of thousands of yuan himself and has used his influence to continuously develop colleagues, friends and subordinates to participate in the GGP project and bring his own offline to Beijing to participate in the annual meeting of the project. However, I personally cashed out more than 3.2 million yuan through the Bitcoin website. There are only 26 floors in the offline line, and more than 1,300 offline accounts, and the MLM amount is more than 57 million yuan.
Locking the essence of pyramid schemes and strictly putting "crime"
After the case was filed, the Haizhou District Procuratorate set up a task force to intervene in time to guide the public security organs to investigate and collect evidence. The case is large in volume, the evidence is cumbersome, the number of people involved is large, the amount involved is huge, and how is the case qualitative? How do many people involved in the case distinguish the nature of behavior? Compared with the traditional pyramid schemes, the prosecutor of the case found that the case presented many new features: it was confusing by multiple names such as “technology + finance + business”; it operated in a corporatized manner, with clear division of labor and professionalism; The combination of offline MLM and marketing is strong; the publicity platform is promoted and the publicity is wide. In response to these, the prosecutor handling the case closely follows the "life gate" of the case, and concentrates on the personnel structure, propaganda content, and the company's revenue and expenditure in the network marketing, and focuses on solving the problem of qualitative identification of the case.
Through the inspection of the company's accounting books, the prosecutor of the case found that most of the company's income comes from the membership fee paid by the members. Only a small part of the products are purchased. Even many members simply do not buy the products. The essence of the company's profit is the number of “offline”. , the joining of newcomers and the payment of membership fees. As of the filing, the company's book income was more than 200 million yuan, of which more than 100 million yuan was used for pallets, which is the illusion that members earned profits. It was also used for publicity expenses, conference fees, employee salaries, website development, and market development costs. Returning customers' investment funds, distributing shareholder dividends, and developing the next round of new scam “big health”. Some shareholders took large sums of money from the company. For example, a certain amount of furniture sold through the sale of hundreds of thousands of yuan to the company was 11.5 million yuan. Wang bought nearly 300 million yuan through the purchase of calligraphy and painting, and Lu took 20 million in the name of buying real estate. Yuan et al. By comparing the company's income and expenditure details and the electronic data of the MLM platform, the prosecutor of the case confirmed that the product was sent to the point system, and the project income came from the development of the downline, which locked the essence of its pyramid scheme.
Due to the large number of people involved in the case, how to distinguish the people involved in the case, to improve the "crime" and achieve a precise strike has become another problem that plagues the prosecutor. “MLM is usually a “pyramid” type of sales model, which makes it difficult to determine the organization and leadership behavior of suspects. In general, in the MLM organization, in addition to the lowest sales staff, other levels of MLM personnel. There are certain organizational and leadership behaviors, so it is especially important to understand the organization and leadership behavior in the MLM organization," said the prosecutor.
The first is to accurately identify the level of personnel. After the task force discussion and research, the identification of the leader's identity should be considered comprehensively from three aspects: the scope of management, the level of the marketing network, and the amount involved. Therefore, the prosecutor handling the case is divided into three levels: the initiator, the regional marketing leader, and the personnel who play a key role in the establishment of the organization. According to the specific role of the role in the GGP marketing activities, Strictly in accordance with the provisions of judicial interpretation, it is strictly recognized as the organizer and leader.
In addition, those who did not participate in pyramid schemes and those who could not determine the role of pyramid schemes due to evidence issues were strictly guilty according to law. For example, Zhu Mou and Jiang Mou, as direct marketing personnel, have returned to the company and have no evidence to prove their organization and leadership role in the personal GGP network map. Therefore, the facts are unclear and the evidence is insufficient.
Additional arrest and plead guilty
In the trial of the case, the Haizhou District Procuratorate made a timely pursuit decision in response to the fact that some of the suspects found were more critical than the arrested accomplices in the pyramid scheme. If Cheng is a shareholder of the company and is also one of the promoters of the GGP project, it plays an important role in the promotion of the project. It is the top-level personnel of the MLM organization, which confessed during the review and prosecution stage. The amount of money was denied, and there was a case of non-compliance and summoning during the period of bail pending trial. According to this, the Haizhou District Procuratorate made an arrest decision in accordance with the law at the stage of review and prosecution.
Due to the complexity of the case, the Haizhou District Court held two trials and the first instance judgment on December 29, 2018. The court of first instance found that Lu was guilty of organizing and leading the pyramid scheme, sentenced him to five years in prison and fined 1 million yuan, and sentenced him to six years in prison for the crime of deforestation. 1 million yuan. Other members of the organization were sentenced to prison terms ranging from two to six years, and fines ranging from 100,000 yuan to 800,000 yuan. The defendant refused to accept this and filed an appeal on January 7, 2019. The Lianyungang Intermediate People's Court heard the case and considered that the evidence in the case was indeed sufficient. Considering that some of the defendants had meritorious deeds, on September 25, the second instance court ruled that the first instance was upheld. The original judgment of the crime and the main penalty, the amount of fines for some of the personnel was adjusted, such as Lumou penalties of 955,000 yuan.
Liang Jingjing, Assistant to the Procurator of the First Procuratorate of Haizhou District Procuratorate, Lianyungang City, Jiangsu Province:
Big data has already warned us of the explosive and spurt growth of MLM. According to the statistical MLM judgment, since the introduction of the judicial interpretation of the pyramid scheme in 2013, the number of suspected pyramid schemes has increased sharply. Today's MLM is no longer a word-of-mouth communication model. Instead of using social platforms such as WeChat, voice and video chat rooms, it is under the banner of “financial innovation”, “capital operation”, “consumption investment”, “network management” and “crowdfunding”. "Charity Mutual Aid" and other names are engaged in new MLM activities.
As in this case, Lu Mou and other six promoters decided to create a “global universal win-win point” project, commonly known as “GGP” project, and build a virtual currency online trading model through the e-money boom, but did not tell investors. The behind-the-scenes tray manipulates the truth about the price of false prosperity, obscuring its ultimate goal of transferring assets. Nominally, they can earn membership by buying products, but in fact, members only recharge and do not receive products. Members are profiting from the layers of investment, and then cash on the BTC100 website to create a A closed trading model similar to blockchain. In order to expand their influence and raise their popularity, they once invited nearly 10,000 people to hold a publicity meeting, use media propaganda, and through the network platform and the company's field development, quickly developed a large number of members throughout the country. The concept of pyramid schemes is endless and the methods are complicated. We only have to polish our eyes and recognize the essence. Remember to use any development head or member investment as the basis for rebate. Do not join.
In addition to handling the case, the prosecutor has been thinking about why the pyramid schemes are frequently staged. The dazzling pyramid schemes have taken control from the primitive desires of people for profit, to the temptation to create dreams that are difficult to refuse, and to control people's psychological demands under the blessing of successful learning. As in this case, many MLM participants know that the product and value are very different, and they know that the level of expansion is the same as that of ordinary MLM. However, because they are brainwashed by the pyramid leader, they think that they are the new wave of global economic tide of “blockchain + bitcoin”. And the helm. In this regard, the prosecutor reminds that every happiness comes from reality, every success starts with hard work, only down to earth, pragmatic and enterprising, in order to achieve their own happiness.