Shanghai Businessman Loses Over 14 Million Yuan in Elaborate Scam Using Hired Actors

A Shanghai businessman lost more than 14 million yuan in an elaborate six-month fraud in which suspects allegedly hired actors to pose as company executives and a foreign buyer, Shanghai police said. Six of the nine suspects were professional actors, police said.

The victim, identified by his surname Qian, runs a steel wholesale business and also handles bank-acceptance bill discounting. In December 2025, a friend of more than 10 years introduced him to a man surnamed Li, who claimed to be a senior executive at a major corporate group and proposed a profitable large-value bill business.

Police said Li pretended to be wealthy and influential by surrounding himself with people presented as business leaders, arranging five-star hotel stays and hosting expensive dinners. A supposed finance director showed Qian images of two bank-acceptance bills worth 540 million yuan and 200 million yuan, while claiming they could not be photographed because they were commercially sensitive.

The group then drew Qian into a series of purported deals. A man posing as an executive at a Nantong steel company claimed the company was preparing to list and needed 800,000 yuan to secure pre-IPO shares.

Qian transferred the money after finding that the name used by the suspect matched that of a real company executive, police said. The company had no listing plan.

Another purported executive later asked Qian for a 1.5-million-yuan payment in exchange for access to discounted steel. Li also invited Qian to invest 4 million yuan in a factory transaction, bringing in a man posing as a foreign buyer to stage a demonstration that funds had arrived.

The promised business remained perpetually "in process" as the group sought further payments. After losing more than 14 million yuan over six months, Qian became suspicious and reported the case to police.

Investigators said Li had previously served a prison sentence for fraud and had begun deceiving people after falling into debt through gambling. The supposed executives and buyer around him were actors paid by the day, while the luxury cars were rented and the bank-transfer screenshots were fabricated.

Bundles of cash displayed by the group contained genuine banknotes only on top, with bank training notes underneath, police said. Investigators said the money obtained from Qian was used to repay debts and fund personal spending.

Procuratorial authorities have approved the arrests of Li, a suspect surnamed Wang and other alleged participants, according to police. Investigators are continuing to trace the funds.