THREE pyramid sales organizers were sentenced to jail terms ranging from six to 12 years in Guangzhou, the Information Times reported Thursday.

The three played important roles in a pyramid sales network that raked in more than 180 million yuan (US$22 million) from September 1999 to May 2000. Of this amount, more than 34 million yuan has not been returned to the buyers.

Li Weidong established a company to conduct pyramid sales in September 1999. He recruited Hong Baoping and Tan Liangping, to work as general manager and vice general manager.

Hong and Tan, who were well known in the field of pyramid selling for some years, designed many promotional activities to attract network members.

They claimed that anyone could buy company products (clothes or electrical appliances) worth 368 yuan to become a member with a return income totaling 710 yuan over three months. People who bought 30 products could establish a branch office and receive five yuan from each member they recruited. Later, another man experienced in pyramid selling, Gao Qingshan, joined the company as a marketing manager.

The company's business was quite successful with the help of Hong, Tan and Gao, the report said. Li and the three others absconded in May 2000.

The report said Hong was sentenced to 12 years with a fine of 500,000 yuan, Tan 11 years with a fine of 500,000 yuan and Gao six years with a fine of 830,000 yuan. The verdict was handed down in the Guangzhou Intermediate People's Court on Wednesday.

Under the verdict, all property of the three would be confiscated to be paid back to buyers.

Li, the head of the company, would be sentenced later as he was also involved in other cases.

 
Editor: Wings