Twenty-one people with links to an investment company have been detained on suspicion of illegal fundraising, a term often used to imply fraud, police said yesterday.

Disgruntled investors gather outside Zhongjin Capital Management Co’s offices yesterday, which they allege cheated them out of US$5.2 billion. [Photo/Shanghai Daily]

An investigation was started when members of the public complained of being cheated after investing in various schemes offered by Zhongjin Capital Management Co.

Police did not release details of specific complaints, but said in a statement that the company "defrauded investors with non-existent programs ... inflated performance reports and illegally absorbed capital from the public."

Dozens of people claiming to be victims of the alleged fraud yesterday descended on the company's offices on Zhongshan Road E. in Huangpu District, in the hope of regaining some of their missing money.

According to Zhongjin's own website, between July 2012 and January of this year, the firm raised 34 billion yuan (US$5.2 billion) from 130,000 investors for its principal investment product alone.

Police said that on Monday they detained the controller of Guotai Investment Holdings Co — Zhongjin's major shareholder — as he was attempting to board a flight out of Shanghai.

The other 20 suspects were detained the following day.

Anyone who feels they may have been cheated is urged to come forward.

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