A investment scam involving more than 500 people in Beijing attracted attention once again on October 14, with 90% of the investors being elderly people. The amount of funds raised exceeded 160 million yuan (RMB), causing investors to lose over 110 million yuan.
According to reports from the Chinese state media on October 14, the man involved, Mr. Feng, has a total of 21 companies under his name. He used multiple companies under his actual control to promote over ten so-called investment projects such as equestrian clubs, orchards, forests, wagyu cattle, red wine, and promised annualized returns ranging from 12% to 36%, mainly targeting elderly people for fund recruitment.
In November 2025, Mr. Feng was sentenced to 14 years and 6 months in prison for fundraising fraud, and fined 1 million yuan. After he appealed, the second trial in March 2026 upheld the original verdict.
According to a previous report by the “China Youth Daily,” after the verdict took effect, Mr. Feng did not return any funds, and a total of over 1.6 million yuan in raised capital was recovered in this case.
The report indicates that from 2018 to 2021, Mr. Feng and others, without approval from financial regulatory authorities and without financing qualifications, recruited investors through seminars, flyers, and other means.
The contract durations were mostly one to two years. After the contracts expired, the sales agents persuaded investors to transfer their money to the next project and sign new contracts.
Only a small portion of the raised funds was used for operations, with the vast majority being used to pay off the principal and interest of early investors, personal consumption, and other company expenses.
Starting from the end of 2020, investors were unable to retrieve their matured funds one after another. A victim named Ms. Wang stated that companies controlled by Mr. Feng made excuses such as preparing for listing and frozen accounts, then the offices were vacated, and the responsible persons could not be contacted. Mr. Feng was arrested in October 2022.
Ms. Wang was introduced to this company by a friend and was impressed by the luxurious office environment, even receiving gifts of noodles and eggs upon leaving.
The company introduced her to the equestrian project, claiming it was a project for the Beijing Winter Olympics, and due to difficulties in obtaining loans, they raised funds privately, promising a return rate of over 20% per year.
She initially had doubts, so the company organized 10 buses to take investors to a county in Hebei for inspection. Ms. Wang mentioned that they were received on-site by individuals introduced as “government officials” who claimed that a equestrian club, equestrian base, and equestrian education base would be built locally, with several surrounding villages to be relocated.
Mr. Feng also showed investors his ID, property ownership certificate, and home address, claiming that he would not deceive people. Ms. Wang eventually invested 500,000 yuan.
The company controlled by Mr. Feng also promoted a Northeast forestry project, claiming that investors could obtain high returns and land rights certificates for the forestland, which were certified by the government, notary office, bank, and a third-party guarantor company.
The report revealed that the so-called multiple certifications and land rights certificates were all forged. Before organizing investors to inspect the equestrian site, the company would temporarily rent horses to set up the scene; when taking people to visit the orchard, they would hang banners with the company name, packaging an unrelated venue as their own project.
One of the so-called elderly care projects provided on-site foot care, hair cutting, and other services, but it consistently operated at a loss. The related company’s total taxable income over several years amounted to only 8 yuan and was deregistered in November 2019.
The incident sparked discussions among netizens. Some commented, “This is a scam tailored specifically for elderly people who have retirement pensions.” Others believed that faced with a long-term, meticulously arranged trap by scammers, it is not simple to blame the elderly for seeking small benefits. Some netizens also stated, “The elderly truly need more care and attention from the younger generation.”