A SHANGHAI e-commerce company founded by Taiwanese star couple Zhang Ting and Lin Ruiyang has had assets worth 600 million yuan (US$94 million) frozen due to an investigation by domestic market regulator over an alleged pyramid scheme. The market regulator in Shijiazhuang, Hebei Province, said it had received several reports about a suspected pyramid scheme involving Shanghai Dowell Trading, according to a letter widely circulated on Chinese social media Tuesday. “The investigation began June 5 and because of Shanghai Dowell Trading’s use of financial institutions to transfer or conceal funds involved in pyramid schemes, the administration has applied to the people’s court to take preservation measures under the law,” said the letter dated Dec. 23. Shanghai Dowell Trading responded Wednesday that it is a “l(fā)egally operating company that has always complied with the government guidance, adhered to the legal operation, and paid taxes according to the law. ... At present, the company is operating normally. Our company will actively cooperate with relevant departments,” said the statement on the company’s Weibo account. Founded in 2013, Shanghai Dowell Trading, owning the cosmetics and skincare brand TST and the lifestyle product brand TMM, sells its products via e-commerce and brick-and-mortar stores. As many as 50 Taiwanese and mainland celebrities have recommended Dowell’s products on their social media accounts or attended Dowell’s promotional events in the past. Mainland actor and director Xu Zheng and actress Tao Hong are also shareholders. As early as 2016, several skin irritation and acne cases caused by the TST face masks were reported but Zhang insisted that their products were approved by regulators and safe. Shanghai Dowell Trading was also recognized for making the highest annual tax payment in Shanghai’s Qingpu District in 2018, with the company claiming to have paid 1.2 billion yuan in tax that year. Lin, 61, and Zhang, 51, were renowned for starring in a series of romantic TV series in Taiwan in the 1990s.(SD News) | 