Chinese Man Loses Rs 1.06 Crore To Gym's 300-Year Membership Scam

A Chinese man has filed a lawsuit after a gym duped him out of Rs 1.06 crore (870,000 yuan) for memberships lasting 300 years. The man, identified as Jin, bought the memberships at the gym in the Binjiang District of Hangzhou, where he had been working out for three years, according to a report in South China Morning Post.

"From May 10 to July 9, I bought about 1,200 lessons and membership cards with an accumulative validity period of 300 years, at a total cost of Rs 1.06 crore (871,273 yuan)," Jin said.

In May, one of the sales workers at the gym approached Jin and pitched him a promotional offer that was valid for existing customers.

"After the customers bought a one-year membership card for Rs 1.08 lakh (8,888 yuan), the gym could sell it to new customers for Rs 2.03 lakh (16,666 yuan), an ad for the gym read," the report highlighted.

While Jin was sceptical about the deal, the sales worker ensured it would work out to his benefit, adding that the gym would only keep 10 per cent of the mark-up while the rest would go to the customer.

"He said if they did not sell it within two months, they would return all the money to me," said Jin.

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Sales staff vanishes

Swayed by the greed of high returns, Jin caved in and bought two membership cards for over Rs 2.07 lakh (17,000 yuan). Afterwards, the sales staff pressed Jim to buy more membership cards and private tutoring lessons. Convinced yet again, Jin spent over Rs 36 lakh (300,000 yen) on one of the occasions.

Things turned pear-shaped in July when the gym was supposed to return some of the principal. Having not received the money, Jin approached the sales staff, who told him that the transaction was still under review.

By the end of the month, the gym's management and sales staff vanished in thin air, leaving Jin desperate for his money. He later found out that all the contracts he signed with the gym did not mention the returns promised by the sales worker.

"I admit that I have been brainwashed by them, because I believed I was only one small step away from getting back all my money," Jin said.

Quizzed about why he spent so much money, Jin said he loved working out and considered the memberships and lessons as a “health investment”.

The gym is still open to customers but only the receptionists and administration staff are at work.