Five Los Angeles-area residents were indicted Thursday on charges of running a $30-million illegal pyramid scheme targeting Chinese American communities in Los Angeles, San Francisco and New York City, authorities said.
A Los Angeles federal grand jury returned an indictment that alleged that for about three years beginning in 2011, the five men and women operated Hong Kong-based companies that purported to make money selling online education courses for children.
Authorities allege that investments were solicited primarily from Chinese Americans. Investors turned over payments of $1,380 and were falsely promised easy returns and shares of the company ahead of a public offering.