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Business

China savers rue UK 'pyramid scheme'

Opening sequence

Opening sequence

Business

China savers rue UK 'pyramid scheme'

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COMING UP:China savers rue UK 'pyramid scheme'

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Transcript

00:00:00
>> Punctun Jun is sitting in an office that used to be hers. That is, before she sold her factory and pumped all the money she could get into a British Investment Fund that promised a fat return. The $1.5 million she put into Euro FX stopped bringing returns in less than a year.
00:00:19
In mid 2013, Pun realized she had fallen for what Chinese officials described as a pyramid scheme and her nightmare began.>>
FOREIGN]
> Now we'll have to pay back money to the loan sharks our house has been mortgaged to them. If you don't pay in time, they'd give you trouble.
00:00:35
Just last winter, they locked me up with no food or water for two days. Reuters China correspondent Engen Tham has spoken to 35 Euro FX victims across the country. Many of their experiences.>> So Euro FX attracted about 3,700 investors according to victims most of whom are in China.
00:00:54
And victims also said that about $1 billion were invested. And it seems to have led to suicides, family break down and a lot of grief across the country.>> Euro FX was fronted by this man, westerner David Burn the company used a London address to draw thousands of nearly affluent Chinese investors to invest in the scam.
00:01:16
Even after the fund began to close in July 2013, freezing all of its investors accounts, Burn continued to seek investment. He has said he was not really in charge.>> Because I need to make sure that your money is safe.>> The 52 year old was detained for questioning by police and freed on bail in April this year.
00:01:35
He's now stuck in China due to a travel ban and says he's helping police with their investigation.>> Having spoken to the investors and some of the victim groups. I understand that this is just the tip of the iceberg and that many people have not yet come forward.
00:01:50
And the reason for this is because it's really shameful to publicly acknowledge that you have been defrauded. In total, Chinese police have issued 23 arrest warrants for illegal fund raising. But it might not be an easy case to crack as it seems to have fallen in the gaps between national systems.
00:02:08
Still, Pun says that she hopes one day she could get back what she has lost.