An institution in Zhejiang, China, called "Rushi Academy," has been accused of having founders who were pyramid scheme ringleaders and of using violent discipline on minors. The academy has been shut down, and three founders, including Ruping, have been criminally detained on suspicion of abusing students.
According to reports from China Central Television (CCTV News), the investigation team announced that one of those detained is Lai Zeming (alias Ruping, 58 years old), who was sentenced in 2002 by the Haicheng District People's Court of Beihai City, Guangxi, to two years in prison for illegal business operations and fined 500,000 yuan (about 300,000 Malaysian ringgit).
According to the investigation, Rushi Academy did not register as required by law and operated at a location rented by Lai Zeming from a private enterprise in 2016, covering a total area of 306.1 mu. Its business activities mainly relied on six companies associated with Lai Zeming and his relatives. The approved business scope of these six companies primarily included organizing and planning cultural and artistic activities, enrollment support services, health consulting services, education consulting services, and so on.
The briefing stated that Rushi Academy was an unlicensed and illegal operation. Under the guise of traditional Chinese studies and etiquette, it offered long-term and short-term classes as well as lectures, conducting closed-off training sessions in batches. It has now been shut down, and all trainees have returned home.
The briefing also stated that, based on investigation and evidence collection, Rushi Academy was found to have engaged in physical beatings, corporal punishment, and restricting personal freedom during its operations. Lai Zeming, along with individuals surnamed Cheng and Xie, have been criminally detained by the Xinchang County public security authorities on August 7 for suspected abuse of people under their care. During the investigation, police also uncovered other possible illegal activities, and related cases are under further investigation.
The investigation team further stated that the Rushi Academy case exposed a lack of oversight by related departments in Xinchang County. The local authorities have said they will learn from the incident, carry out comprehensive rectification, and hold relevant staff strictly accountable. At the same time, Xinchang County will accelerate the case investigation, use this as a lesson to conduct thorough inspections, improve regular oversight mechanisms, and effectively protect the legitimate rights and interests of the public.