A billionairess in east China's economically booming Zhejiang Province has been detained on charges of illegal fund raising, local police said on Monday.

Wu Ying, 26, head of the Bense Holding Group, has allegedly pooled funds illegally by promising high returns to her creditors, said Du Shibing, head of the economic crime investigation brigade under the Dongyang police bureau.

She had promised investors lucrative returns ranging from 3 to 10 percent per month, and attracted many investors to channel funds into her company. But several of her creditors have failed to reclaim their investments, Du said.

Local police have detained four others who were allegedly involved in the fund-raising. They have also seized her shops and businesses and frozen all her bank accounts. Over 700 employees in the Bense Holding Group were dismissed after local government paid their salaries.

The Dongyang government has set up a panel to register and audit the assets, debts and loans of the company, and called on creditors to report their loans to Wu.

Du said the amount of money she amassed could be "formidable", but did not reveal the exact amount as the investigation is still underway.

Wu, born to a farmers' family in Dongyang City in Zhejiang Province, started her business career in beauty parlors in 1998.

The woman made a high-profile comeback to her hometown by investing about 300 million yuan (38.4 million US dollars) to establish 15 companies within three months from Aug. 10 to Oct. 12 in 2006.

Her businesses included a mall, a car service shop, building material stores, hotels and coffee shops, according to the local industrial and commercial bureau.

Her blitz fortune-amassing has fanned rumors that she had built her fortune through futures, smuggling or inheritance from South Asian warlords.

Wu has denied all the rumors and claims "all her money is clean".

Local police are still investigating the case and she could face 10 years in prison if convicted.

Source: Xinhua