Fraud ring offering ‘spiritual guidance’ busted

The China Post news staff

An illegal banking business claiming to offer “spiritual guidance” was busted by the Miaoli District Prosecutors Office after it was discovered that the suspects offered their “followers” interest rates higher than banks in order to encourage people to deposit money in their illegal company, while at same time using spiritual classes as a cover. The primary suspect Huang Yuan-yin (黃圓映), claiming to be a “spiritual adviser,” told her followers they could “create happiness and wealth together” if they deposited at least NT$1 million in her company “Honfuhai,” (紅富海) which offered an yearly interest rate of 9 percent.

The company would then return around NT$80,000 to NT$90,000 to the followers immediately after the deposit was made as an enticement. The followers in turn would bring in others to join the classes and deposit money. Huang garnered thousands of followers in 10 years, making more than NT$30 billion in profit. According to the investigation, Huang used the illegal profits to purchase properties around the island and invested in LED maker Leadray (賀喜能源).

The suspects were charged with violating the Bank Act and detained by the prosecutors.