Ex-Chinese pyramid scheme boss rebrands as culture guru, charges US$18,000 to ‘discipline’ kids

A pyramid scheme mastermind has been uncovered, having transformed himself into a traditional Chinese culture guru who “educates” students through corporal punishment.In July, a pre-recorded video by a 16-year-old Chinese girl named Lin went viral among her friends. In the video, Lin pleads for help: “I don’t want to be sent to an internet addiction treatment school or a behaviour boot camp. If you can’t reach me, please call the police and rescue me.”Lin recorded the video just before the summer holiday, stating that her parents planned to send her to a summer camp at the Rushi Academy in Xinchang county, located in eastern China’s Zhejiang province.Previously, she had spent a year at the academy in 2024 with her parents paying a tuition fee of 120,000 yuan (US$18,000) to allow the school to discipline her, as she had been refusing to attend school and had shown disrespect towards her parents.In her video, Lin mentions that the academy is situated in a tourist area within a valley, housing over 20 students, most of whom were minors dealing with similar issues. The academy confiscated their phones and identity documents, requiring them to meditate, read scriptures, and attend lectures on traditional Chinese culture daily.Students were allegedly subjected to regular physical punishment if they “did not listen” or even if they “failed to smile.”Despite knowing how her daughter was treated at the academy, Lin’s mother supported the staff, claiming: “We were also educated by teachers like this when we were children.”In his crowded classrooms, desperate parents revere Ru Ping as a spiritual saviour, enrolling their “problem children” in his strict correctional academy. Photo: HandoutAs Lin’s video and other students’ complaints about the academy circulated online, a more shocking truth came to light. The academy’s founder and headmaster, Ru Ping (formerly known as Lai Zeping), who presented himself as a “loyal communicator of traditional Chinese culture” and a “home education mentor,” was actually a former mastermind behind several pyramid schemes.Between 1998 and 2001, Ru Ping, under his real name, founded multiple pyramid scheme companies and illegally raised over 14 million yuan (US$2 million). In 2022, he received a two-year prison sentence and a 500,000-yuan fine for illegal business operations. His identity and story were also featured in a documentary.Ru Ping never attempted to hide his past from his students; instead, he seemed proud of it, claiming he “grew up in prison.”He stated: “A winner is still a winner despite imprisonment,” in a recording of a lecture captured by a student.Further ReadingLin’s mother continued to support Ru Ping despite knowing his criminal background.Another student revealed that Ru Ping had been presenting himself as an educator since at least 2012, as she had attended a training course led by him during that time. His 2012 course was terminated after reports surfaced accusing it of being a brainwashing pyramid scheme.In 2024, this student unexpectedly discovered that Ru Ping was once again the lecturer for a course at the Rushi Academy.Ru Ping’s academy heavily stresses traditional obedience, preaching a core doctrine that instructs students to “be filial to parents and subservient to husbands.” Photo: HandoutMoreover, the academy operates multiple branches not only in Zhejiang but also in Guangdong, Fujian, and Shandong provinces. Lai’s son manages one of these branches.The academy offers several courses targeting adults, charging between 5,800 and over 10,000 yuan (US$1,500), along with a school designed to “discipline problematic youths” for a cost of 120,000 yuan per year.The academy particularly emphasises filial piety, conveying its core lesson that students should “be filial to parents and respect husbands.”In recent years, private schools promoting traditional Chinese culture have proliferated across the nation. Some parents enrol their children to study classical Chinese texts, while this has sparked controversy among those who believe children should receive a modern, scientific education.These schools are not regulated by education authorities as they lack accreditation as educational institutions, and the staff do not require teaching licenses.As the academy generated widespread online controversy, officials in Xinchang county announced the establishment of a joint team to investigate the institution.“It looks like a cult,” remarked an online observer.“Lai continues to engage in his old business – pyramid schemes – all these years. traditional Chinese culture is merely his new tool for mind control,” stated another.“Parents are also at fault for sending their children to such schools,” expressed a third commenter.