Legal analysis: On February 20 16, Shan Mou 1 and Wang Mou 1 (handled separately) introduced the business model of Yangxintang Dajian Health Industry Co., Ltd. into Huangdao District. On may 20 16, Yangxintang onehealth industry co., ltd was incorporated in Qingdao, Shandong province. On may 20 16, the defendant Zhang Moumou was hired as a company lecturer by Shan Mou 1 with a monthly salary of 3,000 yuan. Yangxintang Great Health Industry Co., Ltd. Shandong Qingdao Branch copied the business model of Hunan headquarters Yangxintang Great Health Industry Co., Ltd. and relied on Yangxintang Great Health membership management system to conduct business. The company's "action to create wealth plan" takes "action to create wealth" as the slogan, takes the name of consumer rebate, takes the development of member investment as the bait to obtain high returns, and attracts and develops offline members by attracting people. Members are divided into five levels: health friends, health stars, health instructors and health directors. The level of default is divided according to the performance of developing offline members' investment, and the higher the level, the more profits. In order to develop offline members and publicize the operation mode of Yangxintang, Zhang Moumou is responsible for publicizing and explaining the operation mode, system and products of Yangxintang, and training and developing offline members. By the time of the incident, Qingdao Branch of Yangxintang Health Industry Co., Ltd. had developed 2000 offline members, involving 300 million yuan. Court verdict: Defendant Zhang Moumou was convicted of organizing and leading pyramid selling activities, sentenced to three years' imprisonment and fined RMB 100,000.
Legal basis: Article 224-1 of the Criminal Law of People's Republic of China (PRC) organizes and leads pyramid selling activities in the name of selling goods and providing services, requiring participants to obtain the qualification to join by paying fees or purchasing goods and services, forming a hierarchy in a certain order, directly or indirectly taking the number of people who have developed as the basis for remuneration or rebate, inducing or coercing participants to continue to develop others to participate, defrauding property and disrupting economic and social order, shall be sentenced to fixed-term imprisonment of not more than five years. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.