China court jails founder of traditional medicine firm over pyramid scheme

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BEIJING: A Chinese court jailed on Wednesday (Jan 8) the founder of a local traditional Chinese medicine firm for running a pyramid scheme, after ...

Shu was arrested a year ago, soon after an online article recounting the death from cancer of a four-year-old girl who had received treatment from the firm went viral on social media.

The article, on healthcare platform DXY.cn, accused Quanjian of using misleading advertising to attract patients with claims about its treatments. The company said in a social media post at the time that the article was inaccurate.

Operators of pyramid schemes typically make money by recruiting members, who pay fees to act as salespeople of goods, rather than relying on the sale of the goods themselves. Founded in 2004 and headquartered in the northeastern city of Tianjin, Quanjian has expanded into an empire with billions of yuan in sales and many hospitals and stores, local media reported.

 

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