Founder of China’s Quanjian Sentenced to 9 Years for Illegal Activity
After a year-long investigation and trial, Shu Yu Hui, the founder of Chinese direct seller Quanjian, was found guilty of leading formal activities through the MLM model, which is prohibited in China. Only one-to-one direct selling is permitted. He was sentenced to nine years in prison and fined $7.2 million. An additional 11 Quanjian employees were also charged and sentenced to prison terms of three to six years as well as fined. The company was separately fined $14.4 million, and the illegally obtained funds were confiscated. It wasn’t until a news story broke about a 4-year-old Chinese girl dying of cancer while her father chose only to medicate her with Quanjian’s supplements that the operations against Chinese law was exposed. The company had allegedly made false product claims that its products cured cancer.