China announces 234 arrests in provincial banking scam

BEIJING (AP) — Authorities in central China have announced the arrests of 234 people allegedly involved in a scam to bilk people out of their savings with the false promise of high interest rates. The scandal drew national attention after investors seeking information about their money were prevented from reaching the capital of Henan province, Zhengzhou. Another attempt was met by gangs of unidentified men who attacked depositors while police stood by. The authorities say the alleged mastermind and his associates had taken control of four county-level banks and lured investors with promises of interest rates as high as 18% annually.