Fugitive Financier Tried in Shanghai Over $14 Billion Ponzi Scheme

More than a month after his extradition to China, Lin Qiang — fugitive financier and key figure behind the collapsed investment firm Shanghai HHSC Capital Management Co. Ltd. — stood trial in Shanghai, accused of orchestrating a sweeping fundraising scam that left a 30 billion yuan ($4.2 billion) financial black hole.

The two-day trial, held from Nov. 19 to Nov. 20 at the Shanghai No. 2 Intermediate People’s Court, saw prosecutors bring charges against Lin, seven associates, and three affiliated companies for fundraising fraud, illegal deposit-taking, and money laundering.

According to the prosecution, between January 2019 and August 2023, Lin and his co-defendants illicitly raised over 100 billion yuan from investors across China. The case underscores persistent risks in the country’s loosely regulated wealth management sector, where firms have exploited loopholes and manipulated regulatory filings to build large-scale Ponzi schemes.