Updating a story MHProNews brought you July 17, 2015, concerning a 3D printing press that manufactures modular housing using a secret ingredient by the Zhuoda Group in China, cz reports it is China’s most recent suspected fraud.

In China, regulation is not keeping pace with the proliferation of financing schemes and wealth management products issued by banks. Zhuoda has raised about $1.57 billion (10 billion yuan) from some 400,000 Chinese investors, guaranteeing a 30 percent return, according to Watching, a digital publication owned in part by Alibaba. However, one of the company’s alleged backers does not exist, and there is scant evidence of underlying assets to support those returns.

With claims of $15.7 billion (100 billion yuan) assets and a workforce of 15,000, the company asserts it has invented a secret composite that could replace cement, wood, pottery clay, and stones—and could be recycled. It is allegedly waterproof, fireproof, corrosion proof and can last up to 150 years in any environment.

Moreover, it will withstand a 9.0 earthquake, resist strong winds, provide superior insulation, and generate negative ions. In addition to saving construction time and cutting labor costs, Zhuoda claims the modular building has a 33 percent profit margin.

Furthermore, Zhuoda’s assertion that it has a $94 billion a year deal with Russia for subsidized housing was refuted by the Russian Embassy in China. Similarly, a reported contract with the DR Congo for modular homes was denied by the DR Congo Embassy in China.

The provincial government’s financial affairs office is now investigating the company’s fundraising, but the Chinese government has restricted information about the case to governmental publications, effectively dampening additional news. ##

(Photo credit: 3Dprint–modular home being sited, made from secret ingredient)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.