Reborn Cat Sheriff

Chapter 553 Unscrupulous Merchants
There were eight or nine grain station workers who gathered around, but only Zhao Zhigang and Feng Yi were blocking the entrance to the building.

Seeing that they seemed unable to stop these bewitched fools, Lin Ge became extremely anxious.

"Ow~"

The enemy outnumbered them, and he couldn't let Zhao Zhigang and Feng Yi suffer losses below. So, after roaring, Lin Ge chose to jump down and fight alongside his brothers. Anyone who wanted to obstruct law enforcement would have to get past his claws first.

"What do you want to do?"

Ma Baifen stormed down the stairs, glaring at the eager yet somewhat apprehensive migrant workers, and suddenly burst into a tirade of curses.

"You sons of bitches! What are you doing rushing over here? Obstructing police investigation? Do you want to go to jail? Huh! She said I'm not a police officer, and you really think you don't recognize me? Or have you thought that after all these years of hard work in Shili Town, you still haven't remembered my face? Huh? You don't recognize me, right? Fine! Then I'll reiterate! I'm Ma Baifen, the director of the Shili Town Police Station, and I'm currently handling a case! What do you want from me? What do you want! To lay a hand on me? Huh! Anyone who dares to take another step forward, try it! You think I'm too old to handle you bastards? Tell me! You bastards, you dare to assault a police officer?"

Ma Baifen's series of roars stunned everyone present.

Not only the farmers who were incited by Yang Yuhua, but also Zhao Zhigang and his group of outside police officers, as well as Ma Baifen's subordinates from Shili Town Police Station, were all staring wide-eyed in astonishment.

When have they ever seen Ma Baifa lose his temper?

This old man, who usually smiles like Maitreya Buddha and does everything slowly, seemingly never knowing what it means to be in a hurry, actually has this side to him.
Look at Ma Baifen cursing so loudly and spitting everywhere. He doesn't look like a veteran policeman at all. He looks like an old hooligan!

Only He Qiang showed an expression of 'I knew it'.

As the police officer who partnered with Ma Baifen the longest at the Shili Town Police Station, He Qiang knew just how volatile Ma Baifen's temper was back then. In an era when the legal system was not yet fully developed and the people's respect for the law had not yet been fully cultivated, Ma Baifen was not the kind of easygoing, talkative person he is now. Back then, when faced with village-to-village brawls and disputes between national law and clan law, the police would roll up their sleeves and take matters into their own hands. It was only through his booming voice, which could subdue everyone, and his unparalleled skill with the baton, that Ma Baifen was able to quell all the chaos in the entire Shili Town.

In the past ten years or so, there have been no deaths from armed clashes, no private law enforcement or vigilante justice, and no large clans causing trouble for their neighbors in Shili Town. This is all thanks to Ma Baifen.

Now that he's older and retiring, and society has improved, Ma Baifen has begun to cultivate his character. But if anyone thinks he's truly a kind old man, they'd have to see how many of the old folks in the entire town have already forgotten Ma Baifen's face.

"..."

Lin Ge turned to look at Ma Baifen, never expecting that this old man, who was dedicated to cultivating outstanding successors for the Zhangzhou police system, could show such a fierce side.

But the worst thing is when a bad person is constantly being bullied by another bad person. As soon as Ma Baifen made his move, all the migrant workers cowered in fear.

Upon hearing the commotion, village officials rushed over and gave the people from their own villages a stern dressing-down. This serious crisis, which had almost escalated into a vicious attack on the police, was thus quickly averted.

The entire leadership and clerical staff of the Ermao Grain Purchasing Station, including the cleaners and gatekeepers working in the building, totaling more than a dozen people, were all detained and taken directly to the Economic Crime Investigation Division of the Municipal Public Security Bureau in police cars.

Ma Baifen personally led the team over, and as soon as they arrived at the Municipal Bureau, they saw a fleet of police cars returning at the same time.

It turns out that besides Yang Yuhua, Mao Xiaoming and Mao Xiaoliang have also been successfully apprehended, and even the leadership of their company has been almost entirely brought back. A few who went on vacation during the May Day holiday were also notified by phone to return immediately, otherwise they would be subject to online arrest warrants as wanted fugitives. Given this unexpected turn of events, it's unlikely these individuals would abandon their families and, with little money on them, choose to flee.

"The bank has frozen all the funds accounts of all the people involved! They did it according to the list of cadres of the two companies, freezing the accounts of everyone from the team leader upwards without missing anyone."

Xu Xiangjie reported another piece of good news to Wang Guofeng.

With the bank's active cooperation, the funds involved in the case were prevented from being transferred abroad any further. Although bank records showed that multiple sums of money under Mao Xiaoming and Mao Xiaoliang's names had been remitted overseas, the losses were ultimately prevented from escalating further.

To put it more cynically, as long as the funds that have fled do not exceed the combined value of Xiaoming Food Co., Ltd., Xiaoliang Trading Co., Ltd., and Ermao Grain Purchasing Station, there is still room for maneuver for the government.

"Old Nie, we really owe you a lot this time!"

Wang Guofeng patted Nie Guoqiang's shoulder with lingering fear, then looked at his nervously approaching subordinates and couldn't help but sigh.

With the police investigation and information provided by the bank, the general situation of the Ponzi scheme led by Mao Xiaoming, Mao Xiaoliang, and Yang Yuhua has become clear.

Over the past three years, a total of 6,324 similar fund transfers were made to Ermao Grain Purchasing Station, involving 5,204 accounts, the vast majority of which were farmers' accounts. Further system screening revealed over 4,080 suspected fraudulent accounts that only received funds and never transferred them out, involving over 200 million yuan. In other words, each account transferred an average of over 40,000 yuan to Yang Yuhua, equivalent to two years' worth of hard-earned income for a farmer.

And now... they've all ended up in the pockets of the Mao family.

"Heh... If you have the ability to fool five thousand people, why the hell don't you choose to fool some rich people instead of squeezing the blood and sweat of ordinary people?"

Wang Guofeng was so angry that he laughed instead.

"How much money is left in the Mao family's bank accounts?"

Nie Guoqiang is more concerned with practical issues, such as how to return the money that the farmers have been cheated out of to its rightful owners.

"Less than 60 million."

Wang Guofeng grunted and said in a deep voice, "The Industry and Commerce Bureau sent people to investigate the three companies owned by the Mao family. They've basically become worthless shells. Xiaoliang Industry and Trade still owes more than 40 million yuan in debt, and Xiaoming Foods owes the bank nearly 100 million yuan in loans that are about to become overdue. As for Yang Yuhua's Ermao Grain Purchasing Station... Heh, didn't Old Ma say he was rushing to sell rapeseed? Its account is empty!"

"So, in other words, even with all the debts combined, there's still a shortfall of around 300 million?"

Nie Guoqiang clenched his fist.

Three hundred million! It was all embezzled and transferred by the Mao family! Zhangzhou is not a first or second-tier city, and the city's annual funds are limited. How could they possibly come up with so much money to repay the debts of the Mao family and quell public anger?
However… putting everything else aside, we must help return at least a portion of the 200 million yuan that the farmers were swindled out of. We can let them suffer a little, but we absolutely cannot let them be swindled out of everything.

"What are you talking about? I don't understand! What crime have I committed? Explain yourself!"

Sitting in the interrogation room, Mao Xiaoming remained defiant, like a dead pig refusing to be scalded by boiling water.

He refused to answer any of the police's questions during the interrogation and denied all of his fraudulent activities.

"You tricked those people into giving you their money, doesn't that constitute illegal fundraising?"

"It's just an investment! Investment has risks, what's wrong with that? Oh! If you lose money, call the police! But if you make money, can't I just refuse to pay you? It's just a normal business investment, why are you accusing us of fraud?" Seemingly having already planned his response, Mao Xiaoming arrogantly declared, "All the investors listened carefully to my repeated emphasis on the risks, and they signed and fingerprinted the contract! This matter is being handled legally by Chu City Wenjie Law Firm, and all the contents of the contract are legal and compliant. Where is the fraud? Just because the investment lost money? Did I want to lose money? Those individuals who lose tens of thousands of yuan shout and call the police, so if I lost tens of millions, would I hang myself? In short, this matter has nothing to do with illegal fundraising. If you insist that I broke the law or that the contract has problems, then go talk to my lawyer!"

Cao Chen glanced at Mao Xiaoming, knowing that this guy had indeed been prepared.

What's clever about this guy is that he has a mentor who is secretly shifting the concept. He's transforming a criminal act into a simple civil liability.

According to him, whether it's a flawed contract or a loss on investment, these are normal business issues. Business issues can only be handled under civil law, and the victims can only file a civil lawsuit against him, not be tried by public security organs.

As for going to court... where do ordinary people have the money, time, ability, and patience to go to court against such scoundrels who have the help of law firms behind them?
Even if you win the lawsuit, the compensation issue could still turn into a mess.

Cao Chen was very familiar with this kind of thing, or rather, the criminal investigation team had encountered many such situations. Sometimes, what criminal investigation police hated most was not the commercial scams, but the foolish victims who fell into them without thinking.

These so-called investments are clearly unrealistic and obvious, yet they still manage to lure people blindly into investing their entire fortunes. Then, using a classic financial maneuver of "switching the toy for the prize," they leave these people penniless and with no recourse. What good is going to the police then? When they were blinded by the promise of huge profits, why didn't they ever consider why such a windfall would fall into their laps?

Police are not omnipotent! Whenever they encounter such situations, all the police can do besides feel heartbroken and offer sympathy and comfort.

Of course, this matter involving the Mao family is not as simple as a financial game.

If the initial scheme was indeed ostensibly about raising money through investment, the fact that the funds exceeded the production capacity or the normal returns that could be generated constitutes a Ponzi scheme already implies financial crime.

However... identifying the perpetrators has become the most worrying problem for the police.

"You mean... Yang Yuhua was the one who signed all the contracts with the farmers?"

Wang Bin tapped his fingers lightly on the table, his expression serious. "Brothers Mao Xiaoming and Mao Xiaoliang, are you trying to absolve yourselves of all responsibility? What about the financial situation? Didn't Yang Yuhua transfer the money she received to her two sons?"

"This is the most troublesome part right now."

Wang Guofeng sighed and said, "The main financial transactions of Ermao Grain Purchasing Station are with Xiaoming Food Co., Ltd. But the transactions on paper are simply the sale and purchase of agricultural products such as rice, rapeseed, peanuts, and corn. In other words, these are all legal. At most, it's just that Mao Xiaoming didn't pay on time after receiving the goods, resulting in an outstanding payment of about 20 million yuan to Ermao Grain Purchasing Station for grain. That's all. The transactions between Xiaoming Food Co., Ltd. and Xiaoliang Trading are pretty much the same; they delivered goods but didn't receive payment on time. Overall, this is still just a commercial issue, and we can't interfere until both parties report it to the police."

"In other words, the farmers' income goes from Ermao Grain Purchasing Station to Xiaoming Food and then to Xiaoliang Commerce, going further and further away, but it has nothing to do with the farmers themselves anymore. They can only ask Ermao Grain Purchasing Station, which is just an empty shell, for payment?"

Wang Bin understood Wang Guofeng's meaning: only Yang Yuhua owed the farmers money, and it had nothing to do with Mao Xiaoming and Mao Xiaoliang. As long as Yang Yuhua didn't actively seek repayment from the two brothers, no one could get the money back.

Or to put it another way, Yang Yuhua voluntarily took on the debt for the two brothers. Even if she were to go to jail, so far she is the only one who has gone.

Of course, given the amount of this pure debt and the value of the Er Mao Grain Purchasing Station, if only the compensation is enforced and penalties are imposed, Yang Yuhua would not be sentenced to more than a few years. It is estimated that the Mao family has already thought this through.

"Hmph! What a pair of filial sons!"

With a muffled groan, Wang Bin continued, "How did the two brothers manage to clear themselves of the illegal fundraising? This large sum of money is different from the previous ones; it's pure embezzled funds, and we must recover it no matter where it went!"

"The money raised illegally was not directly transferred to the Mao brothers!"

Wang Guofeng sighed again and said in a deep voice, "Yang Yuhua transferred the funds she had swindled to an investment company in Hangzhou, entrusting it with investment matters. Then, dozens of investment projects of this investment company began to fail and be liquidated one after another from the moment they took over Yang Yuhua's funds. Now, almost all the companies involved have gone bankrupt. In other words, on the surface, Yang Yuhua's investment funds have all gone down the drain. Even if we demand a refund on the grounds that Yang Yuhua's investment funds are illegal gains, that investment company can no longer come up with the money. In fact, at the end of November last year, that company even underwent a change of ownership, and the boss and legal representative became several defaulters and blacklisted individuals..."

"Heh... What a clever escape!"

Wang Bin couldn't help but laugh. Didn't this mean that the money had already disappeared without a trace in the market? And if that investment company in Hangzhou was a legitimate and compliant business, there was no way for people in Zhangzhou to get their money back from him?

Moreover, even if you can find a loophole, the legal representative has already changed. How much money can you get from a deadbeat?

Meanwhile, Yang Yuhua was already going to jail. Even if she were charged with illegal fundraising, it would only mean a few more years. To be honest, how much difference would that make to her?

"This is a trap, layer upon layer! This is troublesome!"

Yang Ye, who was standing nearby, finally spoke up and sighed, "From the moment those hundreds of millions left Zhang City, it was impossible to get that money back. But with such a large sum of money transferred out, the banks haven't made a single move. Isn't that a bit ridiculous?"

"The bank has located the Rural Commercial Bank employee who was responsible for contacting Mao Xiaoming and Mao Xiaoliang. He had just recently resigned. When we went to find him, he had already boarded the high-speed train to Guangzhou, attempting to leave the country from there. Fortunately, the case was discovered in time, and he was intercepted and brought back. According to the on-site interrogation, he admitted that he had indeed engaged in irregular operations. Moreover, he not only violated bank regulations by concealing the Mao brothers' financial alerts, but he also actively helped forge documents to apply for illegal loans. He received a 2 million yuan kickback for that 100 million yuan loan, but this also gave the Mao brothers leverage to cover up various financial flow information for them."

"Well! It really was collusion between insiders and outsiders! They said he would resign and go abroad if he was caught red-handed and didn't get enough benefits?"

After listening to Wang Guofeng's report, Wang Bin laughed in anger.

A group of ignorant farmers, three unscrupulous businessmen, and a bank mole have managed to pull off such a shocking case!
The vast majority of the funds have now vanished without a trace. The time it would take to completely recover them is more than enough for some individuals to launder the money and make it disappear without a trace. They've cleverly used legal means within legal means to evade legal judgment—they're truly remarkable! As of now, the amount of money still under their control in Zhangzhou City and that can be recovered is less than 100 million yuan! And this is only because it was discovered early, before the Ponzi scheme expanded to involve even more people and become more terrifying.

"One hundred million yuan isn't even enough to make up for the losses of the deceived farmers or quell the social unrest!"

Wang Bin sighed. This time, he figured the government would really have to pay to settle things. Even if the Mao brothers' crimes could be confirmed during the upcoming interrogation, unless they honestly handed over the laundered money, what could anyone change?

Given the Mao brothers' prior preparations, they must have been prepared to spend a few years in prison before coming out to enjoy life to the fullest.

"This case is a slap in the face to your Economic Crime Investigation Department!"

Yang Ye glanced at Wang Guofeng.

"..."

Wang Guofeng was silent for a moment, then gritted his teeth and said, "This money might not be unrecoverable! First, the money from the farmers selling their grain was transferred to Mao Xiaoliang at the end, and there are still nearly 20 to 30 million yuan that haven't been discovered! Li Yuhua swindled money under the guise of investment and handed it over to an investment company, but Mao Xiaoliang, as the terminal of the entire agricultural trade, had his company take all the agricultural products, and the money from those sales is still worth pursuing and controlling. Add to that the large sum they laundered through investment that disappeared without a trace; I believe the Mao brothers, knowing they might go to jail, would never trust anyone else to manage their money. This money is very likely still in their hands, and they've probably hidden it in a 'safe account'! In this case involving over 400 million yuan, at least 200 million yuan is still in their hands. If we can find this or these 'safe accounts'..."

"Then this case is still under control!"

Wang Bin finally saw some slightly better news, provided, of course, that the money had to be found.

(End of this chapter)