A noted angel investor, still a novelty in China, has been arrested for fraud involving 210 million yuan (30.8 million U.S. dollars), local police in east China's Zhejiang Province said Friday.
Liu Xiaoren, 45, a legal representative of Hangzhou Hongding Venture Capital Co., Ltd., turned himself in at the public security bureau of Deqing County May 4. He said he borrowed a lot of money at high interest rates from creditors but failed to repay it, according to the bureau.
The police detained him May 5 but local prosecution didn't approve his arrest until Wednesday, June 10, the bureau said.
After an investigation, police said Liu borrowed 210 million yuan since July 2006 by promising high interest rates and revenues for creditors, although he knew he wound never be able to repay the debts.
Liu told creditors that he needed the money for investment in Internet companies and start-up funds.
Liu's Hangzhou Hongding is one of the first venture capital companies in China. It made Liu famous in the industry of venture capital. He was nicknamed "Angel big brother" and "No. 1 Angel investor."
Source: Xinhua
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