A man was sentenced to four years in prison and fined 470,000 yuan (US$56,600) for illegally organizing pyramid sales, according to local court in Hangzhou, capital of eastern coastal province of Zhejiang.
From January to April in 2000, Yang Weiguo, head of the Hangzhou Xingang Trade Company, conspired with Chen Kehe, the company's market supervisor, and others to employ sideline salespersons to sell skin-care products, believed to be made in Canada.
Yang and his fellow conspirators claimed that every employee could be admitted part-time salespeople for the company if he or she purchased a set of products worth 360 yuan (US$43), and every salesperson would get paid a 600 yuan (US$72) bonus within next two months of admission.
Over one hundred people were tricked into joining the illegal business by Yang and his associates, who sold 2,592 sets of products to the victims, and swindled a total of 4.5 million yuan (US$542,000) in revenue, according to the indictment.
The court of the West Lake District in Hangzhou ruled that Yang 's illegal operation was a disguised form of pyramid sale, which is banned by the law in China.
(Xinhua 01/04/2001)
