Online Lender Ezubao Took $7.6 Billion in Ponzi Scheme, China Says – NYTimes.com

I mentioned in class that the United States does not have the monopoly on Enron/Worldcom type cheaters. Here is a recent example from China. Apparently there are “a growing number of cases of fraud and flameouts” in the country.

I find the chosen evidence disposal approach interesting. The company placed documents in bags and buried them in the ground. What happened to old fashioned shredding or fireplaces?

More importantly for those here stateside, it is worth noting the company was in the peer-to-peer lending space. It may serve investors well to do their due diligence in US based companies in that same market.

Finally, for my FIN101 class, this is yet another example of what happens when risk and return are out of balance. If someone seeking your money promises you a low risk 15% remember this: “a promise is a comfort to a fool.”

-Dr. Moore

http://mobile.nytimes.com/2016/02/02/business/dealbook/ezubao-china-fraud.html?referer=http://news.google.com/

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