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Couple in $100,000 savings scam nabbed
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Posted on Dec 27 2000
Police arrested on Christmas eve two men who allegedly swindled 43 Chinese garment factory workers over $100,000 in what authorities described as the biggest savings scam on the island.
Investigation showed that Lin Zu Xiu, owner of Zhida Free Market, and her husband Li Rui Yuan have been collecting money from workers of Mirage Garment Factory and L&T Garment Factory. Some of the victims have been depositing their money at Zhida Free Market as early as January 1999.
The victims complained that both Xiu and Yuan promised the workers they will earn 10 percent in interest for their deposit in Zhida Free Market. Others were told their deposits will earn $100,000 in interest every month.
Superior Court Associate Judge Timothy H. Bellas set a $100,000 cash bail each for the temporary release of Lin Zu Xiu and Li Rui Yuan. Their travel documents were also confiscated after police discovered that they have purchased airline tickets to Hong Kong and scheduled to leave on Dec. 26, 2000.
Three victims have filed charges of theft by deception against the couple and more garment factory workers have sought the help of DPS in a desperate move to recover their money.
One of the victims, Li Yao, told the police that she deposited at Zhida Market $12,500 in January 1999. This year, she started withdrawing her money from the bank and deposited an additional $13,000 on Aug. 17, 2000. Ms. Yao went to Zhida Market and demanded the $12,500 but was told that there was no money.
Another victim, Kefeng Yao, who deposited a total amount of $13,000 after she was promised to get 10 percent interest in three months, received the same reply when she inquired about her money.
Xueye Yu deposited $2,2000 this year because she was told that she will earn a huge interest in three months. But on Dec. 11, 2000, when she wanted to withdraw the money, the couple simply asked Ms. Yu to come back.
