Police disperse ant scheme investors

China: Hundreds of riot police were deployed in northeast China this week to disperse thousands of disgruntled investors who…

China:Hundreds of riot police were deployed in northeast China this week to disperse thousands of disgruntled investors who surrounded Communist Party offices demanding help to get money back from a strange scheme to raise ants to make an aphrodisiac.

The investors, who included many workers laid off from the city of Shenyang's ailing heavy industrial belt as well as poor farmers, had put their savings into a scheme operated by the Yilisheng Group, which raises ants to provide the ingredients for a tonic which is supposed to work as an aphrodisiac.

The scheme promised returns of €325 on every €1,000 invested, and has scooped more than 10 billion yuan (€1 billion) in the northeastern province of Liaoning, according to local media.

It has run for several years despite local media reports saying it is a scam, and is promoted by leading local comedians on television.

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Since last month, the group has twice delayed making payouts, prompting fears of a government clampdown or that the company is bankrupt.

Several thousand protesters gathered outside government offices and there had been sporadic clashes.

Clifford Coonan

Clifford Coonan

Clifford Coonan, an Irish Times contributor, spent 15 years reporting from Beijing