POLICE said yesterday they have questioned 171 people in connection with an alleged US$3 million telephone scam involving hundreds of victims.

　　An investigation was launched after police in Jinshan District received multiple complaints from people claiming to have been cheated by bogus representatives of a TV shopping channel.

　　All of the alleged victims said they received a telephone call from a person claiming to be from the TV station who told them they had won first prize in a lucky draw.

　　They said they were told that a package of ornaments, jewelry and other “valuables” — worth 70,000 yuan (US$10,600) — was on its way to them, and all they had to do to claim the prize was pay a “transfer tax” of 10,000 yuan.

　　Hundreds of unsuspecting people fell for the scam and paid up, police said. Only on closer inspection of the precious gems — which turned out to be mostly cheap tat — did they realize they had been duped.

　　Police did not say how many people claimed to have been cheated, but said that in November alone they received more than 350 complaints. They estimated that victims had paid out a combined 20 million yuan.

　　After the suspects were traced to Kunshan, a city in neighboring Jiangsu Province, more than 100 police officers traveled from Shanghai to apprehend them last Wednesday.

　　Two of the suspects are believed to be the gang’s ringleaders.

　　While in Kunshan, officers sealed up a warehouse where the gang kept the “prizes” and froze a bank account with a balance of more than 8.7 million yuan.