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In Depth: How Chinese Private Equity Firms Got Scammed by Their Own Sales Teams

By Xu Zeyi, Ren Huilan and Zhang Yukun
2022年08月23日 19:32
Dozens of small and midsize private fund management firms say they have been defrauded by con artists who each work at multiple companies simultaneously with the intention of only collecting their base salaries
Dozens of small and midsize private fund management firms say they have been defrauded by con artists.

When an entrepreneur surnamed You set out to build a sales team in Shanghai in December 2020, she thought she had hired a team full of potential to sell her firm’s fund products.

What she didn’t count on was for the 10 new hires to be regularly absent for work and fail to seal any deals. Worse still, they worked together to create a false sense of assurance of progress.

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