A 32-year-old Beijing farmer is being sued for raising funds of more than 31 million yuan (US$3.73 million) by misleading his lenders, reports Beijing Youth Daily.

In 1998, Niu Yongshun started a tourism business with most of the start money borrowed from friends and relatives at a high interest rate of 20 per cent.

When his business failed to take off, he was unable to pay back the money, so he began using the high interest rates as bait to borrow more money from others to cover the old debts.

Before the lenders sued him, Niu had borrowed money from more than 50 friends and relatives and also forged contracts in a bid to swindle more capital.

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