Li Tuchun : Founder of Taizinai was arrested

Taizinai Group’s founder Li Tuchun was arrested in Zhuzhou, Hunan on June 12. The reason was said to be the illegal absorption of public funds. It was also reported that Li Tuchun was involved in the illegal land reserve in Zhuzhou.

Li Tuchun’s involvement in the illegal absorption of public funds was related with his marketing measures of his early operation of Taizinai. According to the public data, Li Tuchun adopted the sales pattern of “paying money first, delivering goods second”. All the distributors of Taizinai had to inject a sum of payment reserve into the company’s account based on their annual sales. “The ones who paid the reserve three months before the deadline can be awarded with 30% of marketing fees.”

The legal sources said that Taizinai’s adoption of “stimulation measures” for the distributors and agents to collect money for the enterprise has already been positioned in disguised and illegal absorption of public funds.

Another report said that Li Tuchun’s arrestment was related with the tourism resort project in Zhuzhou. Li Tuchun owned 40,000 mu (6589.8 acres) of national forest park and had already built an international golf club. The policemen have already made some investigations in this place and some of people involved in this case have already been arrested.

Previously, Taizinai was haunted by the potential of bankruptcy. Li Tuchun’s arrestment may accelerate the company’s fall.