China pyramid-scheme probe: Xiao Hua Gong charged in Canada, NZ police freeze nearly $70m

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June 25 2018

Nearly $70 million in New Zealand bank accounts has been frozen as part of a global investigation into a wealthy Chinese businessman accused of running a massive pyramid scheme from Canada.

Xiao Hua Gong has built a business empire in Toronto including a hotel chain and television channels, as well as attending fundraisers for Canada’s Prime Minister Justin Trudeau and donating to the governing Liberal Party.

But the entrepreneur, also known as Edward Gong, has now been forced to deny his success and influence was gained from an alleged $202 million pyramid scheme selling medicines in China.