Police Investigate Zhongzhi Case Suspects’ Illegal Gains to Recoup Investor Losses

Beijing authorities have taken ‘criminal coercive measures,’ which include arrest, detention or residential surveillance, against the suspects

Zhongzhi’s wealth management firms are likely being investigated for illegal fundraising, a criminal lawyer told Caixin.

Police in Beijing have taken control of major suspects in the criminal case involving the wealth management units of embattled shadow banking giant Zhongzhi Enterprise Group Co. Ltd. (中植企业集团有限公司), and are investigating their illegal incomes as a means to recoup the billions of yuan in investor losses.

The public security bureau of the capital’s Chaoyang district has taken “criminal coercive measures” — such as arrest, detention or residential surveillance — against the suspects, which include senior executives of the wealth management firms, the bureau announced on Saturday.