Guangzhou police have smashed a swindling racket that targeted the victims of other investment scams, reports New Express News.

The group that ran the Molong Kemao Company scam, in which thousands of senior citizens were lured into contributing to a "high-return" investment scheme, were behind the new racket operating under the name Guangzhou Daohe Consulting Firm (No 1 Branch), said police.

The firm distributed leaflets promising to expose such investment scams and help victims recover losses within two years.

The bogus company convinced former victims to pay 320,000 yuan (US$38,660) worth of "deposits" before police raided its office in the Haizhu District on October 30.

Fifty-three people suspected of taking part in the new scam were arrested.

One victim of the Molong scam fainted when she learned she had been bilked of another 40,000 yuan (US$4,830) by the same group of tricksters.

Police urge scam victims to seek damages through official means, saying that any person or company promising "expedited recovery" was not to be trusted.

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