Shenzhen cracks $10m contract fraud case

The Shenzhen public security bureau has seized six suspects connected with a multimillion-dollar fraud case.

According to the department, police were tipped off when a victim surnamed Tan reported in July that he had forwarded $10 million for a project in return for a big payoff.

Tan had been told that overseas financing was required for a $3 billion contract, and that his contribution was needed to make that go smoothly.

On Aug 29 last year, Tan signed a contract that would see him receive $150 million when he advanced the $10 million.

However, Tan didn't receive the money and on July 27 he reported the incident to the police.

Investigation by police revealed that the project didn't exist and that Tan had become involved in a pyramid-like scam.

The six suspects have confessed and the case is under further investigation.