Illegal pyramid sales organizations have duped hundreds of Shanghainese into going to Guangxi Zhuang Autonomous Region.

　　The Xinmin Evening News reported that pyramid organizations in Gulin, Yulin and Wuzhou of Guangxi Zhuang Autonomous Region are luring people nationwide with the promise of huge profits in businesses like garment wholesale, trade and food stalls.

　　Each has to pay 3,800 yuan (US$458) to 40,000 yuan to register.

　　Guangxi police have cracked down on the racket, but such organizations are still operating secretly, according to an insider in Guangxi.

　　Several local victims said they were duped by acquaintances into going to Guangxi and then controlled by the organizations.

　　A man surnamed Cai, 28, used to work in a factory in Qingpu District.

　　During the Labor Day holiday, a friend dropped in and talked of making a fortune in Guangxi.

　　"I opened a food stall there and it's easy to earn a thousand yuan a day," said the friend. "Why not follow me there? You can surely earn more money than working here."

　　Cai decided to give it a try.

　　On the night of May 9, Cai and his friend arrived in Yulin and the next day the friend introduced him to a woman, who gave him a lesson about public relations and the "pyramid" structure.

　　Then another man told him he could earn 3.8 million yuan in two years if he joined the group.

　　Cai also felt it strange that someone always followed him if he went out to make a phone call or buy things.

　　Cai and about 80 "colleagues" lived in a five-story building in the suburbs. But they had to pretend not to know each other when they met outside the building.

　　Cai finally learned that everyone had to pay a registration fee of 3,800 yuan to join the organization and received a suit, a watch and some cosmetics to sell.

　　The members were encouraged to persuade more people to join. If they did, they could deduct a percentage from the registration fees.

　　He was also warned to be careful because the operators claimed to have gangster backgrounds.

　　Cai fled. On the train back to Shanghai, he met seven people who had had the same experience.