screenshot from: China Judgment Document Network
Recently, China Judgment Document Network published an "Administrative Ruling on Non-Litigation Execution Review of Administrative Penalty for the Qingtian County Market Supervision Administration and Xiang Moujie Industrial and Commercial Administrative Management (Industrial and Commercial) Administrative Penalty (hereinafter referred to as the "Administrative Ruling"). The "Administrative Ruling" shows that the Qingtian County Market Supervision Administration applied to this court for compulsory execution on May 22, 2020 to compulsory enforcement of Qingtian County Market Supervision Administration [2018] No. 170, the Qingtian County Market Supervision Administration (hereinafter referred to as the "Penal Decision") to impose an administrative penalty on the applicant Xiang Moujie 100,000 yuan and an additional fine (the additional fine is calculated as three percent of the amount of the fine every day).
Hidden member was fined 100,000 yuan for suspected pyramid schemes
After the Qingtian County Market Supervision and Administration Bureau found out that, with the recommendation of Liang Mouli from Taizhou, Zhejiang, Xiang Moujie paid 2,980 yuan through Liang Xiaoli on January 23, 2018 to join the China Car Friends United Federation and became a member. At the same time, he registered the user name of xjXXX9 in the car Friends Management System of the China Car Friends United Federation www.XXX.com portal website.
In March 2018, Xiang Moujie recommended Rao Moukang to join the China Car Friends Federation to form an up-and-down relationship. Rao Moukang is the right department to go offline, and Chen Mousen, recommended by Liang Mouli, is the left department to go offline (called the dual-track system). By logging in to the www.XXX.com portal car friend management system department using the xjXXX9 username, it was found that as of April 12, 2018, Xiang Moujie was a squad leader, with a total of 14 levels and 63 people in the offline line. Chen Mousen on the left has Qiu Moufang, Zhan Moujun, Liu Mou and other members, and 32 people in the 12 levels and 31 people in the Rao Moukang part on the right.
Xiang Moujie became a member of the China Car Friends United Association and first received a gift package worth 1,000 yuan B, which contained two bottles of 4 liters of motor oil and two bottles of 4 liters of "power water". The second is to get the corresponding bonus: 1. Get sharing income; 2. Get job commission. The two total income minus 8% taxes, 2% charity fees and 20% consumption commission, that is, 70% is the actual income. The income details are displayed in the daily columns in the car owner management system. The actual cash withdrawal of income can be applied for twice a month, but Xiang Moujie has not yet applied for withdrawal.
Xiang Moujie's income changes the biggest is the job commission. When the number of people in the offline department reaches 6 people to be promoted to employees, the job commission is 190 yuan/day, and when the number of people in the smallest department reaches 18 people, the job commission is 390 yuan/day. As of April 12, 2018, Xiang Moujie had a total income of 8,297.27 yuan and an actual income of 5,808.11 yuan. In March 2018, Xiang Moujie drove to Shenzhen Huide Industrial Development Co., Ltd. under the leadership of Han Mouhong, a native of Taizhou, and others to inspect it. He also listened to the above-mentioned bonus system speech at Huide Industrial Development Co., Ltd., and Pan Mouzhong paid 2,980 yuan to join the China Car Friends Federation on the spot. There is no evidence to prove that Xiang Moujie obtained illegal property and illegal income due to the above-mentioned pyramid scheme.
According to the "Regulations on Prohibition of Pyramid Selling" and Article 27, Paragraph 1 (IV) of the Administrative Penalty Law of the People's Republic of China, the "Penal Decision No. Qingshi Jian Case Zi [2018] 170" was made on the person who applied for execution, and ordered the person who applied for execution to correct the illegal act and impose a fine of 100,000 yuan. Finally, the administrative penalty for fined Xiang Junjie 100,000 yuan and added penalties for the person subject to execution, as stated in the Qingshi Supervision Case No. 170 "Administrative Penalty Decision" made by the applicant was enforced.
"China Car Friends Federation Federation" legal person was sentenced to
On December 20, 2018, the first instance court sentenced the defendant Cheng Guojian to five years and three months in prison and a fine of 2 million yuan for the crime of organizing and leading pyramid schemes.
After investigation, the defendant Cheng Guojian successively registered and established Shenzhen Huide Company, Shenzhen Chang Company, Shenzhen Duanzhi Company, and Shenzhen Shengyuan Jinqiu Company. Shengyuan Jinju Company mainly deals in automotive engine oil and lubricating oil, Duanzhi Company mainly deals in new power alcohol fuels, develops markets and promotes products through Huide Company. Insert members of the Cheyou Association into Huide Company and use the "Xinchelianwei" platform to develop members.
In July 2017, Cheng Guojian and Liu discussed with the development of members of the "China Car Friends United Association" and the promotion of "synthetic hydrogen powered water" (also known as "power alcohol") product experience installation, and designed the "Xincheon packaging" online platform and operation system to develop and manage members. In October of the same year, the platform was officially launched. In the early stages of the platform operation, Cheng Guojian realized its illegality and wanted to make money through pyramid schemes first. After the membership developed to a certain number, he then switched to traditional sales of power water.
Shenzhen Huide Company stipulates that after participants pay 2,980 yuan, they will register on the "Xinche Jiefu" online platform and become a member of the Car Friends Association. Huide Company provides members with gold brand lubricating oil and "bio-based power alcohol" experience equipment. After testing, the methanol content of the raw material liquid, mother liquor and mixed liquid of "bio-based dynamic alcohol" has reached more than 99.5%. In addition, the cost of this product is not exceeding 80 yuan with packaging, logistics and other expenses. In addition, Shenzhen Huide Company uses the return of paid membership fees and enjoying "static dividends" as bait to attract social personnel to join; according to the level of the member itself and the number of member development downlines, as the basis for remuneration, it lures members to continue to develop downline members.
Members can receive dividend commissions by developing membership. Spend 2,980 yuan to become a VIP member and enjoy eight major rights. By analogy, after the corresponding turnover is accumulated, the corresponding level will be reached. The higher the level, the higher the salary, the highest it will reach, with a maximum of more than 1 million yuan in gold and diamond directors.
As of the time being, the "China Car Friends Federation" has established more than 70 branches across the country through the pyramid scheme model, more than 500 registration centers, and developed nearly 150,000 members. The funds involved in pyramid schemes are more than 442 million yuan. After the incident, the public security organs frozen over 100 million yuan of funds.
On December 20, 2018, the above judgment was made in accordance with relevant laws and regulations, and more than 284 million yuan of pyramid scheme funds were recovered in accordance with the law, confiscated and handed over to the state treasury. After the verdict was announced, Cheng Guojian was dissatisfied with the verdict and filed an appeal. On March 29, the second instance court rejected Cheng Guojian's appeal in accordance with relevant laws and regulations and upheld the original judgment.
