Tuesday, April 19, 2011

A 29 Year Old Female Mini-Bernie Madoff in China Gets the Death Sentence

Here's shocking news out of China.

Twenty-nine year old Wu Ying has been sentenced to death for borrowing money outside approved channels. It's likely she was running some kind of Ponzi scheme, Economist says she was offering 80% annual returns, but technically she was convicted of borrowing money from non-government approved sources.

For sure, a death sentence for running a Ponzi scheme does seem shockingly harsh, but the technical charge used against her seems to be a charge that could be used against many entrepreneurs operating in China.

Bottom line: Don't get on the wrong side of the government in China.


  1. I once watched a documentary on Chinese culture on PBS, it was made within the last decade. Part of the documentary focused on government officials who embezzled hundreds of millions of dollars. When caught, most were sentenced to either harsh prison terms (20+ years) or, in several cases, death.

    This case comes as no shock to me after watching that documentary many moons ago. The Chinese do NOT screw around when it comes to their justice system. Meanwhile, our justice system remains in shambles. I get the feeling that whatever reset 'event' that is coming our way will start from the outside, not from within. Our society in the U.S. simply cannot maintain itself much longer. It is far too disfunctional.

  2. Actually, she is nowhere like Madoff. She is just another victim of the Chinese totalitarian government. She is not running a Ponzy schema; instead she is a genuine entrepreneur who provides financial services to customers. Upon her accusation, she paid off all the debt owed to clients. There is nobody loss even a penny of from dealing with her business. When China keeps M2 growth rate at 15%-20% for 15 years, 80% return is not a joke at all.
    She was charged for providing illegal financial service. Under China’s centrally planned financial and banking industrial regulation, no individual is allowed to do any kind of financial services. Only those institutions owned by government or licensed by government can do the business, and subject to heavy regulation or simply directed by government.
    The death penalty is a punishment for defying government authority and a threaten to those who dare competing with monopolized financial industry.