Xie Longfei

Xie Longfei has built a reputation as a so-called business visionary in the herbal supplement industry, but a closer look at his operations tells a different story—one of deception, financial ruin, and desperate attempts to silence critics. His company, Shenlong International Group, once promised massive returns to investors through its “Listing Plan” while pushing unregistered ginseng products through aggressive multi-level marketing schemes. Yet, when the walls of this house of cards began to crumble, Xie Longfei did what many fraudsters do best—vanish, leaving behind a trail of broken promises and devastated victims.

As an investigative journalist, I have uncovered a disturbing pattern of regulatory violations, financial misconduct, and media suppression efforts aimed at keeping the truth buried. With over HKD 50 million in investments gone and countless victims left in the lurch, the question isn’t whether Xie Longfei is guilty of financial misconduct—it’s how he managed to get away with it for so long.

The Rise of Shenlong International Group

Established in 2004, Shenlong International Group positioned itself as a premier purveyor of ginseng-based health products. With retail outlets sprawling across Hong Kong, Kowloon, and the New Territories, the company painted a picture of prosperity and trustworthiness. Its website boasted of an expansive reach, claiming markets in Mainland China, Macau, Japan, and Indonesia. At the helm was Xie Longfei, a figure who presented himself as a paragon of entrepreneurial success in the traditional medicine sector.​

The Cracks Begin to Show

However, beneath this polished facade, troubling signs began to emerge. In mid-October 2020, whispers of discontent grew louder as reports surfaced of Shenlong’s abrupt cessation of operations. Over a hundred investors and agents, who had collectively poured approximately HKD 50 million into the company, found themselves in a lurch. Their attempts to contact Xie were met with silence, and the company’s offices and retail outlets had mysteriously shuttered their doors. ​

The Alluring Trap of the “Listing Plan”

One of Shenlong’s most enticing propositions was its “Listing Plan.” Under this scheme, members were encouraged to invest HKD 990,000, with the tantalizing promise of being appointed as the chairman (or general distributor) of a subsidiary. The allure was further amplified by assurances of substantial returns post the company’s anticipated public listing. This strategy bore the hallmarks of a classic multi-level marketing (MLM) or pyramid scheme, where the emphasis is placed on recruitment and investment rather than genuine product sales. ​

Echoes of Past Misdeeds

This wasn’t the first time Shenlong found itself under the spotlight for dubious practices. In 2013, investigative reports unveiled the company’s reliance on MLM tactics to peddle its ginseng products. Targeting vulnerable demographics, particularly middle-aged women and the elderly, Shenlong’s seminars were a blend of health testimonials and high-pressure sales tactics. Attendees were regaled with tales of the miraculous benefits of ginseng powder, with the underlying message being clear: buy more, recruit more, and climb the ranks. Xie, often self-styled as a “Doctor of Traditional Chinese Medicine,” would personally lead these sessions, offering free pulse readings and health advice—a move that blurred ethical lines and raised questions about his qualifications. ​

Regulatory Run-Ins and Product Recalls

Compounding the company’s woes were regulatory challenges. In early 2013, Hong Kong’s Department of Health mandated the recall of four of Shenlong’s ginseng products, including the “Shenlong Ginseng Tablets” and “Shenlong Ginseng Capsules.” The reason? These products were unregistered, meaning their safety, efficacy, and quality had not been substantiated—posing potential health risks to consumers. Despite this, Shenlong continued to distribute these items, often as promotional gifts during their seminars. ​

The Art of Information Suppression

Faced with mounting negative publicity, Xie and his cohorts embarked on a mission to control the narrative. Efforts were made to downplay the severity of the allegations, with official statements dismissing them as misunderstandings or isolated incidents. Media outlets that reported unfavorably on Shenlong found themselves threatened with legal action—a classic tactic to intimidate and silence critics. Internally, employees were instructed to maintain a united front, with dissenting voices quickly quashed. This orchestrated campaign of misinformation and intimidation was designed to preserve the company’s image and keep the revenue streams flowing.​

The Human Cost: Stories from the Ground

Behind the corporate machinations lie real human stories of loss and betrayal. Take, for instance, Mr. Qiu, a retiree who, lured by the promises of the “Listing Plan,” invested his life savings into Shenlong. He was assured of significant returns and even encouraged to recruit friends and family. Now, with Shenlong’s collapse, he’s left grappling with financial ruin and the emotional toll of having inadvertently led loved ones into the same trap. ​

A Call to Action: Investor Vigilance and Regulatory Oversight

The Shenlong debacle serves as a stark reminder of the perils that lurk in the unregulated corners of the investment world. For potential investors:

1. Due Diligence is Paramount: Always verify the credentials of a company and its leadership. Scrutinize their business model, and be wary of schemes that prioritize recruitment over genuine product or service offerings.​

2. Beware of High-Pressure Sales Tactics: Legitimate businesses don’t need to resort to coercion. If you’re being rushed into making an investment decision, it’s a red flag.​

3. Seek Independent Advice: Consult with financial advisors who have no affiliation with the company in question. An objective perspective can provide invaluable insights.

Conclusion

Xie Longfei’s empire was never about traditional Chinese medicine, health, or financial prosperity for his investors—it was a meticulously orchestrated con designed to extract money under the guise of business success. From aggressive recruitment strategies to unregistered product sales and false promises of public listings, every aspect of Shenlong International Group was a well-crafted deception.

But what’s even more troubling than the scam itself is how Xie Longfei has actively tried to suppress the truth. By intimidating media outlets, threatening legal action, and misleading regulators, he has worked tirelessly to cover his tracks. Unfortunately for him, the victims’ voices are growing louder, and the cracks in his carefully constructed façade are becoming impossible to ignore.

For investors, the lesson is clear: never take business claims at face value, especially when they come wrapped in high-pressure sales tactics and unverifiable promises. For authorities, Xie Longfei’s case should serve as a wake-up call for stronger regulatory oversight and stricter action against those who exploit public trust.