In recent years, following the directives of the Ministry of Public Security, law enforcement agencies nationwide have intensified efforts to combat corruption and misconduct affecting the public. Authorities have collaborated with relevant departments to investigate and crack down on illegal fundraising schemes targeting the elderly, successfully resolving several major cases. These actions have effectively protected the rights of senior citizens and promoted the healthy development of elderly care services. Today, the Ministry of Public Security disclosed five typical cases of illegal fundraising in the elderly care sector.
Case of Illegal Public Deposit Absorption by Wang and Others in Inner Mongolia
—Fraudulent Fundraising Under the Guise of Cemetery Sales with Returns
In May 2022, the Baotou Public Security Bureau in Inner Mongolia initiated an investigation into Wang and others for suspected illegal absorption of public deposits. Investigations revealed that from 2016 to 2019, Wang and associates, operating under a funeral services company they controlled, promoted a cemetery sales scheme promising principal repayment with interest over 1 to 5 years. For example, in the 1-year plan, customers who purchased a cemetery plot could reclaim their principal after one year along with 8%–15% interest. By the time the case was uncovered, over 70 million yuan had been collected from more than 800 participants, 80% of whom were seniors aged 60 or older.
Following the investigation, 11 suspects, including Wang, were apprehended. In December 2024, the Shiguai District People’s Court in Baotou convicted them of illegal absorption of public deposits.
Case of Suspected Illegal Public Deposit Absorption by Li and Others in Liaoning
—Fraudulent Fundraising Under the Guise of “Integrated Medical and Elderly Care”
In June 2022, the Shenyang Public Security Bureau in Liaoning launched an investigation into Li and others for suspected illegal absorption of public deposits. Since 2013, Li and accomplices had registered an elderly care company, promoting an “integrated medical and elderly care” model to solicit funds through prepaid cards and internal equity expansion. The prepaid card scheme promised a 20% return over two years, while the equity expansion plan offered shares at 1–1.2 yuan per unit, falsely claiming an imminent IPO. The scheme defrauded over 5,000 participants, 95% of whom were elderly, totaling 1.2 billion yuan.
Key suspects, including Li, have been arrested, and the case has been transferred for prosecution.
Case of Suspected Illegal Public Deposit Absorption by Ren and Others in Jiangsu
—Fraudulent Fundraising Under the Guise of Investing in a “Health Product” Project
In January 2025, the Zhenjiang Public Security Bureau in Jiangsu investigated Ren and others for suspected illegal absorption of public deposits. Since December 2023, Ren and associates had operated under a plant technology company, promoting an investment in “leafy greens” as a foreign health product with purported benefits for seniors. They lured elderly investors in markets, bus stops, and parks, offering a 200-yuan return on a 3,000-yuan investment after 60 days. The scheme collected over 3.4 million yuan from 90 participants, 80% of whom were elderly.
Four main suspects, including Ren, have been arrested, and the case is under further investigation.
Case of Illegal Public Deposit Absorption by Liao and Others in Hubei
—Fraudulent Fundraising Under the Guise of Selling “Prepaid” or “Membership” Cards for Elderly Care Services
In February 2023, the Ezhou Public Security Bureau in Hubei investigated Liao and others for suspected illegal absorption of public deposits. Since 2014, Liao and accomplices had offered tiered membership cards (e.g., “Platinum,” “Diamond”) for an elderly care facility, promising 8%–11% annual returns and principal repayment after three years. The scheme collected approximately 400 million yuan from over 3,000 participants, 80% of whom were elderly.
Fifty-seven suspects, including Liao, were apprehended. In January 2025, the Huarong District People’s Court convicted them of illegal absorption of public deposits.
Case of Suspected Illegal Public Deposit Absorption by Gong and Others in Hunan
—Fraudulent Fundraising Under the Guise of Offering “Health and Wellness Tourism”
In September 2024, the Yiyang Public Security Bureau in Hunan investigated Gong and others for suspected illegal absorption of