According to the Indian authorities, at least three suspects arrested in the predatory lending hoax trace back to a Chinese-run non-banking financial firm.
To date, officials have arrested 20 suspects, including one Chinese national, as it cracks down on the sinister loan app scams that have pushed many desperate victims into suicidal attempts.
Most were employees of a now-closed firm named PC Financial Services Private Limited Company (PCF).
The Reserve Bank of India withdrew PCF’s license this February. After that, the alleged offenders turned to other apps like Hugo Loan, Coin Cash, AA Loan, AK Loan, and Win Credit.
PCF’s founder is allegedly a Chinese national identified as Jeffery Jhu, who successfully has the firm approved by the Reserve Bank of India. India only authorizes 39 non-banking organizations that Chinese individuals primarily run.
Jhu came back to China in 2020, the year the company was closed. An official says they have switched to managing their syndicate from China.
Jhu engaged in laundering the extorted money for the gang. One arrested Chinese national named Wan Chenghua, 32, worked on behalf of Jhu and transferred ₹100 crores (about $1 billion) of illegal money via bank accounts opened from fake documents.
Chenghua illegally stayed in India after his visa and passport expired in 2020.