In Depth: How a Ponzi Scheme Fleeced China’s Elderly

In early August 2023, a 69-year-old retiree named Li Chunlin made what he believed was a shrewd financial decision. A “little steward” — the term used by sales representatives at Dalian Shanhaihui Development Group Co. Ltd. — had been calling him for days, urging him to put more money into the company’s investment products. The returns were double or triple what any bank offered. The young woman on the phone was warm and persuasive, she had never missed an interest payment. Li trusted her and transferred a further 650,000 yuan ($96,000).