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Fraudsters used AXA to promote funds through the liquidation of the AXA platform last year. Mainland media took the lead in exposing the fund

2020-12-09T14:37:36.481Z

The police cracked a scam of nearly 475 million yuan in "investment-linked insurance" funds and arrested 24 people, including practicing lawyers and insurance agents. In the case, 263 people were defrauded, including 250 mainlanders. And the fraud group



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Written by: Ling Yide

2020-12-09 17:25

Last update date: 2020-12-09 17:28

The police cracked a scam of nearly 475 million yuan in "investment-linked insurance" funds and arrested 24 people, including practicing lawyers and insurance agents. In the case, 263 people were defrauded, including 250 mainlanders.

The fraud group promotes the "Hong Kong Investment Fund" through the investment-linked insurance platform of the multinational insurance company "AXA".

Until mid-2018, the value of the fund plummeted by 90% and the fund was applied for liquidation. Suspected of being deceived, the suffering owner called the police for help.

The incident was exposed as early as last year, and it was widely circulated in the mainland media and WeChat circles, and the media even started off against fraudsters.

And "AXA" issued multiple statements last year stressing that the relevant investment-linked insurance is distributed by independent insurance brokers, and professional investors freely and independently choose the assets linked to their insurance policies. AXA does not participate in any opinions.

AXA stated in the statement that it had actively assisted the Commercial Crime Investigation Bureau last year.

"Hong Kong 01" has made inquiries with "AXA" and the China Insurance Regulatory Authority, but a response is still pending.

The police uncovered nearly 475 million yuan in investment fraud and arrested 24 people including practicing lawyers and insurance agents.

(Photo by Yang Jialang)

Last year, it exploded widely in the mainland media and WeChat circle

In fact, this "investment-linked insurance" fund scam was exposed as early as last year. The victim reported that he had failed to recover the principal and return after purchasing fund products related to professional investors through a local company, and was suspected of being deceived.

As most of the victims in the incident were victims in the Mainland, relevant news has been widely circulated in the Mainland media and WeChat circles.



According to media reports, "AXA" launched a non-guaranteed linked life insurance product called "Evolution" many years ago. There are more than a thousand funds on the platform as the investment targets selected by the insurance company. For professional investors to choose, one of the funds is called "Hong Kong Investment Fund" (Hong Kong Investment Fund SP), or HKIF for short.

Insurance policy linked to "Hong Kong Investment Fund" plummeted by 95% in the middle of the year

In the past, more than 200 customers from the Mainland and Singapore invested in the "Evolution" under Baosheng Sheng through independent insurance brokers, and the policy was set to be linked to the "Hong Kong Investment Fund" (HKIF).

However, the fund's net value plummeted by 95% due to major investment errors in mid-2018, and losses of more than 200 investors amounted to HK$400 million.

It is known that after deducting the handling fee and management fee, the net value of the policy is negative, and the victim even loses a management fee.

AXA issued multiple statements last year stating that "Evolution" is a non-guaranteed linked life insurance product, which is mainly distributed by independent insurance brokers and allows professional investors to freely and independently choose assets linked to the value of life insurance policies.

AXA issued a statement several times: not participating in any opinions

AXA issued multiple statements last year stating that "Evolution" is a non-guaranteed linked life insurance product, which is mainly distributed by independent insurance brokers and allows professional investors to freely and independently choose assets linked to the value of life insurance policies.

AXA stated that it did not participate in any opinions, and the customer understands that the investment risk of such products should be borne by the customer.

AXA statement mentions the incident or fraud and actively assists the police in the investigation

AXA also pointed out that the relevant "Hong Kong Investment Fund" is managed by China Eastern Airlines International Capital (Cayman Islands) Co., Ltd., and most of the Evolution policies that use this fund as the allocation reference fund are distributed by the independent insurance broker "Asia One".

The value of the fund subsequently dropped significantly and investors were notified of their intention to forcibly redeem all shareholders’ investments and liquidate the fund

At that time, AXA pointed out in a statement that the incident may involve fraud, and actively assisted the Commercial Crime Bureau in criminal investigations of suspected fraudulent activities of the fund.

According to AXA, most of the victims who invest in the "Hong Kong Investment Fund" are distributed by the insurance broker "Asia One", which is a subsidiary of First Asia Holdings.

It is understood that of the 24 arrested this time, three of them are the leaders of the group, including a pair of brothers surnamed Shen, one of whom is a practicing lawyer who has been engaged in property sales and agricultural land investment in Hong Kong.

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Insurance money laundering fraud

Source: hk1

All news articles on 2020-12-09

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