Miao Youchun, a major suspect in the high-profile Baiyin Wealth Co fraud case that cost about 3,000 investors over 200 million yuan ($30 million), has been arrested in the Philippines, Shanghai police announced yesterday. Interpol had released an international arrest warrant for him called a red notice.
Miao fled China in January last year when clients of his company, based in the city's Yangpu District, started to complain about being unable to withdraw funds. By that time the company had only a few hundred thousands yuan left in its account, police said.
Miao and Lai Changfeng, the company's legal representative and another major suspect in the case, allegedly promised 8 to 15 percent annual returns on clients' mortgaged properties.
About half of the illegally obtained money in the case has been recovered, police said.
The Chinese authorities will seek the extradition of Lai, who is now being questioned by immigration officials in Canada.
Miao is one of 53 economic crime suspects caught by Shanghai police overseas in the first half of this year in Operation Fox Hunt, which has targeted fugitives in over 20 countries.
In a separate case, police arrested a fugitive visa fraud suspect surnamed Zhou when she arrived in Guangzhou from South America, where she obtained Venezuelan citizenship under the name Zhou Winnie.
She was wanted in relation to a 2 million-yuan visa fraud case 17 years ago in Xuhui District.
Lin Feng, an official from Shanghai Economic Crime Police, said the government is determined to catch every "fox" on its wanted list.
"Once we have solid clues and spot an opportunity to catch the suspect, or try to persuade him to turn himself in, we will immediately set out after him," he said.