Photo: IC Photo
A Shanghai tycoon has turned himself in to police and confessed to fraud relating to his peer-to-peer (P2P) lending business, the latest case in the scandal-plagued industry that has been rapidly shrinking amid intensifying government scrutiny.
Shanghai police have taken “coercive measures” against Dai Zhikang, founder and chairman of Shanghai Zendai Creative and Cultural Development, also known as Zendai Group, for his role in “illegally taking deposits from the public,” also known as illegal fundraising, the police said in a statement on Sunday.
Forty other people involved in the case have faced similar punishment, which can include residential surveillance, detention, or arrest, according to the statement. The police have also frozen assets involved in the case.
Dai told police on Thursday that he had embezzled investors’ funds and was not able to repay them, the statement said.
Dai’s surrender comes less than one month after Laocaibao, a P2P lending platform he controls, stopped providing new loans, and a Zendai subsidiary that directed clients to the platform fired employees.
Read the full story on Caixin Global later today.
Contact reporter Guo Yingzhe (yingzheguo@caixin.com)
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