Uncovering a Counterfeit Health Supplement Ring: Authorities Arrest 18 Suspects – A Pricey Scam 70 Times the Actual Value

According to Xinhua News, the incident began in June 2024 when an elderly man, Mr. Liu, attempted to withdraw 30,000 Chinese yuan (approximately $4,300) from the bank. The large withdrawal amount prompted bank staff to inquire about the purpose of the withdrawal. Initially, Mr. Liu stated that he needed the money for home decorations. However, after persistent questioning from the staff, he admitted that the money was intended for purchasing medicine for his wife.

Mr. Liu showed the bank employee pictures of the medicine he planned to buy. However, an online search revealed that there was no such medicine that matched the pictures he provided.

Suspecting a potential scam, the bank staff advised Mr. Liu to halt the transaction and alerted the police.

Officer Xiao Cheng of the Beijing Railway Police Station, Beijing Municipal Public Security Bureau, stated that Mr. Liu confessed to attending a “health seminar” at a restaurant in Beijing’s Chaoyang District. During this seminar, he was introduced to so-called “health supplements.”

According to Mr. Liu, the seminar organizer, Wang Ling, claimed to be an “expert in developing anti-aging health supplement projects” at the Chinese Academy of Sciences. Wang Ling asserted that the product was a “scientific research achievement” recognized by the state. He also used fake expert interview videos to promote the supplements.

Based on Mr. Liu’s account, the police identified a scam targeting elderly individuals through the sale of fake medicine and health supplements. The Beijing Municipal Public Security Bureau immediately launched an investigation.

After a period of tracing and investigation, the police arrested Ha Wen, Wang Ling, and 16 other suspects, seizing fake health supplements. Ha Wen, Wang Ling’s superior and the mastermind behind the scam, was found to be selling counterfeit health supplements.

The counterfeit health supplement sold by the group was named “SAg Anti-Aging Health Supplement” (translated), in pill form. The manufacturer was a company based in Anhui Province.

The product was advertised as being able to “reverse cell aging,” and “treat diseases such as diabetes, cardiovascular disease, Alzheimer’s, and cancer.”

Testing revealed that the health supplement contained maltodextrin (a flavor-enhancing starch), xylitol (a sweetener), colostrum, and other ingredients. Experts concluded that the product had no pharmacological effects and was worth only about 11.5 yuan per box (approximately $1.65). However, the group sold it for 5,000 yuan for a six-box course (approximately $720), marking up the price more than 70 times its actual value.

Sophisticated Scam Tactics

Ha Wen and Wang Ling confessed to hiring multiple “salespeople” to contact elderly individuals by phone and invite them to “medicine sales seminars.”

Officer Zhao Jiajin from the Criminal Investigation Brigade of the Beijing Municipal Public Security Bureau revealed, “The scam group primarily targeted individuals over 65 years old who were retirees lacking family care and attention.”

“The seminars were held in private rooms of mid-range restaurants in Beijing. The specific time and location were only notified to the victims one day in advance. The group also prevented outsiders from entering the venue,” said Zhou Zhijun, captain of the fourth team of the Criminal Investigation Brigade.

Investigations found that the “salespeople” illegally collected a large amount of personal information of their victims and were skilled in communication, easily gaining their trust.

“The notebooks of each ‘salesperson’ contained records of the victims’ total pension amounts and pension receipt dates,” said Captain Zhou Zhijun.

After making a sale, Wang Ling, Ha Wen, and other key members would share the profits with the salesperson who brought the customer to the seminar.

“Almost all the victims purchased this ‘health supplement.’ Some victims who refused to buy, citing insufficient funds, were still lured by the group, who encouraged them to pay a partial amount and settle the remaining balance when they received their next pension,” Officer Zhao Jiajin revealed.

Based on the monthly sales of the “health supplement,” the police identified approximately 180 victims of the scam.

Stay Alert to Scam Tactics

China’s market regulators and consumer associations warn consumers to be vigilant against scams involving the sale of health supplements. People should refrain from attending “seminars” promoting “new health supplement products” through phone calls. It is also essential not to blindly trust the exaggerated claims of miraculous effects made by these “medicines” or “health supplements.”