World
Elderly retirees face big losses after Chinese trust goes bust, reflecting turbulent economy
CHENGDU, China (AP) — Some investors in a troubled trust fund in China are facing financial ruin under a government plan to return a fraction of their money, casualties of a slump in the property industry and a broader economic slowdown.
Sichuan Trust, headquartered in the southwest city of Chengdu, announced it was insolvent in 2020, stricken by sketchy accounting and failed investments in shopping malls and other projects. A deadline earlier this month to accept a 20%-60% “haircut” or loss on their investments has left some investors in deep financial trouble, according to public announcements and AP interviews with five people affected.
China’s economy, the world’s second largest, depends heavily on real estate development to drive growth and create jobs. Property prices and sales have languished after a crackdown on what leaders viewed as dangerous levels of borrowing, causing dozens of developers to default on their debts.
At the National People’s Congress session in Beijing last week, officials pledged to do more to protect investors. Premier Li Qiang said China would work to control risks and resolve the property crisis.
For the people who put their life savings into Sichuan Trust and similar entities, it’s likely too late. Around 300 of more than 8,000 investors refused to accept a government plan and are looking for legal help, a relative of one investor said. A few who attempted to come to Beijing during the congress to air their grievances were blocked by police, the relative said.
The ruling Communist Party faces a dilemma: Debt is a problem, but falling home prices lead people to scrimp on spending. That squeezes companies’ sales, so they lay off workers and cut back on investment. The result: slowing growth and less wealth to go around.
Inevitably, someone will end up losing out as China’s debt crisis unwinds, said Tsinghua University finance professor Michael Pettis.
“Nobody wants to absorb the loss. If you assign it to households, you weaken consumption even more,” Pettis said. “It’s got to be assigned. And that’s the political problem.”
Trusts are a cross between a bank and an investment fund. Some advertised their offerings as reliable, high interest government-backed accounts. They’re actually private entities that fund projects like factories and shopping malls. Weak disclosure requirements allowed them to use money from new investors to pay what they owed earlier ones, a set-up somewhat like a Ponzi scheme.
“Financial supervision was relatively loose in the past, so the design of these products, including systems for protecting investors’ rights and interests, had serious issues,” said Zhu Zhenxin, chief analyst at Rushi Finance Institute in Beijing. “If underlying assets of financial products won’t generate enough returns to pay such high interest rates, default is inevitable.”
The troubles at Sichuan Trust first surfaced when the government began restricting new sales of trust products in 2020. Without revenue from new investors, it couldn’t pay its outstanding debts.
That summer, Sichuan Trust announced it had 25.3 billion RMB ($3.5 billion at the time) in debts it couldn’t repay. The provincial government and banking regulators took control, ousting the management, reorganizing its books and launching an investigation.
Hundreds of investors staged weekly protests outside the company’s headquarters and their losses became a political issue.
In 2021, police detained Sichuan Trust’s majority shareholder Liu Canglong, a mining and real estate tycoon who was once the richest man in Sichuan, a province of more than 80 million people. He is accused of embezzling trust funds.
In December, the trust announced it would return investors’ funds according to a sliding scale of the original investment. The larger the investment stake, the larger the loss.
That sparked more protests.
“We’re extremely anxious,” one investor who asked not to be named told The AP. “It’s so cruel, the amount of money they’re giving us is so little.”
A person answering Sichuan Trust’s hotline said the company does not take interviews and would not provide comment. Sichuan Trust, the Sichuan provincial government and the China Banking and Insurance Regulatory Commission did not respond to faxed and emailed requests for comment.
The plan to return funds “appropriately favors small and medium-sized investors,” Sichuan Trust said earlier in a public statement, calling it “fair.”
Those protesting fear say they’ve been harassed and intimidated, subjected to police interrogations and threats from their children’s employers. They’ve been barred from leaving Chengdu or, at times, their housing compounds.
On a recent visit to the company’s headquarters, dozens of uniformed officers, half a dozen police vehicles and an empty bus were parked outside. More than a dozen plainclothes agents who refused to identify themselves followed two AP journalists around.
Earlier, a Dutch journalist was shoved to the ground and forced into a police vehicle when he attempted to approach protesting investors.
“They abduct you, they threaten your children,” said another investor, who also did not want to be identified due to fears of more police harassment. “They have so many dirty tricks.”
Analysts say investors were bound to suffer big losses given the size of Sichuan Trust’s debts. Chinese media have reported on the problem, but focused on alleged wrongdoing by those who ran the trust, presenting the repayment plan as a fair solution.
Some of the more than 95% of investors who signed off on the plan said they agreed under duress and were threatened with bigger losses if they didn’t meet a March 5 deadline.
Trusts have a high minimum investment — for Sichuan Trust it was generally 300,000 yuan ($42,000) — and many people believed mostly the relatively well-off were affected.
However, some investors were retirees who said they met the investment threshhold by collecting money from friends and relatives who now want their money back. For them, Sichuan Trust’s default is a calamity.
“They’re so poor, they don’t have money to spend,” said a relative of investors who lost money to the trust. “They don’t have money for medical treatment. They have to borrow money to survive.”
Those interviewed said the name Sichuan Trust led them to believe it was a trustworthy financial institution like a bank, with a steady, fixed interest rates, rather than a risky investment fund. They were attracted by the 8% or 9% interest rates it promised – multiple times higher than traditional savings accounts. Some financially unsophisticated retirees invested large chunks of their life savings.
“The country said trusts are very safe, like banks,” one of the people said. “We didn’t think there would be problems.”
Instead of enjoying their retirements, two of the people said, they’ve had to borrow money from relatives and cut back on their expenses.
“We ordinary people are miserable,” another investor said. “The corruption is so serious.”
China’s roughly $3 trillion trust sector is part of a large “shadow banking” industry in the country, which for decades supplied credit to entrepreneurs and households not served by the state-run banking system. Concerned over speculation and illegal practices, authorities have tightened controls. In 2020, regulators declared victory in cleaning up China’s online peer-to-peer lending industry, or P2P.
Wealth management companies also have gotten into trouble.
“We believe risks could increase, potentially affecting more financial-sector entities, if China’s economic recovery continues to lose momentum and the property sector’s distress is sustained,” Fitch Ratings said in a report after the collapse of another big trust company, Zhengrong.
Officials and analysts say crackdowns have been necessary, but investors footing the bill are questioning how they’ve been carried out.
“I support the Communist Party very much,” one of the investors said. “But some people are blackening the Party’s name.”
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AP Business Writer Elaine Kurtenbach contributed to this story.
World
AI notetakers promise easy meeting recaps, but some professionals question their use
NEW YORK (AP) — Launching an artificial intelligence tool to take notes and summarize important information from a virtual meeting can be alluring. Seconds after one of the agents attends an hour-long video conference, it can deliver a recap of key points and outline a to-do list for all the participants.
But the way popular AI notetakers accomplish those tasks makes some people avoid using them. The technology turns everything said during meetings into data. Confidential personnel information, corporate strategies, trade secrets and remarks that could later be seen as incriminating — all of it could end up in the wrong hands.
“There are huge risks to the organization on AI notetakers,” Amy Dufrane, the chief executive of human resources training and certification provider HRCI, said. “I don’t think companies should use it at all.”
An AI notetaker is a software application or device that uses artificial intelligence, speech recognition and large language models to record, transcribe and summarize conversations. The tools are intended to save time and improve participation, but professionals in a number of fields say there are reasons to be wary.
This article is part of AP’s Be Well coverage, focusing on wellness, fitness, diet and mental health. Read more Be Well.
Chief among them is uncertainty about where the collected data is stored and for how long. Privacy advocates worry the companies behind the AI notetakers are creating voiceprints without consent. Voiceprints — a type of biometric profile similar to a fingerprint but tuned to the unique intonations and characteristics of one’s voice — can be used to access restricted or confidential information, including the contents of bank accounts.
Some tech companies resell data from the notetaking tools they created or use confidential meeting transcripts and recordings to train their AI models. There’s also the risk that conversations between an attorney and client could become fair game in legal proceedings; a New York federal judge in February ordered a criminal defendant to provide prosecutors with documents he created for his lawyers because it already had been shared with a third party, which was Anthropic’s Claude.
“People who use AI notetakers, they don’t always know where the data goes,” said Justin Daniels, an Atlanta-based corporate attorney at law firm Baker Donelson. “And in my context, if the data goes anywhere else and they’re not aware of it, that attorney-client-privileged conversation may not be attorney-client-privileged anymore.”
Here are some tips on the etiquette of kicking an AI notetaker out of a meeting, the risks of using one and how to protect yourself.
The first step when you join a meeting is check for bots
When you join a meeting, make it a habit to check whether an AI notetaker is present. It might appear as a meeting attendee, often labeled as an AI notetaker, or a pop-up message on the screen informing participants the meeting is being recorded. The latter could signal the presence of an AI notetaker.
Virtual meeting platforms such as Zoom and Google Meet let users know when recording is underway, but some meeting software does not make it clear when a notetaker is present, according to Thorin Klosowski, the Electronic Frontier Foundation’s senior security and privacy analyst.
Participants also may use personal notetaking devices that are separate from the meeting platform, in which case the other attendees wouldn’t necessarily know a discussion was being recorded and transcribed.
“You hope the other person would tell you that they’re doing that,” Klosowski said. “Asking everyone for consent before doing a sensitive meeting would be the most polite approach to take.”
If you’re unsure whether someone has deployed an AI notetaker, you can ask. You can also state at the beginning that a meeting is not authorized for recording.
A polite way to establish such a boundary is to say, “Our company policy is that this meeting cannot be recorded,” Dufrane suggested. This relieves the employee, such as a salesperson who wants to make a good impression, of having to be the “bad guy,” putting the onus on the company instead, she said.
Another option is to allow the notetaker for part of the gathering but turn if off at the end to dedicate time for more delicate topics.
“I won’t start talking about anything substantive until it’s shut off, because I just don’t want to take the risk,” Daniels said.
Assert your privacy rights to protect voiceprints
Many AI notetakers determine unique acoustic signatures, or voiceprints, for each speaker in the room, said Chris Pluymers, associate attorney at The Dillon Law Group in East Lansing, Michigan. That’s how the companies distinguish one speaker from another, labeling them with monikers “Speaker 1” or “Speaker 2.”
One way voiceprints are used is to verify the identities of bank account holders over the phone. If bad actors got ahold of a person’s vocal signature, they could use it to access files, commit fraud or take over accounts, he said.
Laws in some states govern how voiceprints can be created and stored and provide rights that individuals can assert to object to the use of an AI notetaker during meetings they attend.
In Illinois, voiceprints are considered biometric identifiers, similar to fingerprints, and are covered under the state’s Biometric Information Privacy Act, which requires written notice and informed consent before an AI notetaker or other agent collects voiceprints. The law also mandates a documented data retention schedule and destruction policy, Pluymers said. But most companies using the tools have none of those systems in place, Pluymers said.
“In the world of AI, the world of data and privacy, the world of biometric identification, I don’t think you can have such a lax approach to it,” Pluymers said. “I think getting out ahead of it is crucial.”
Under the Illinois law, employees can say they don’t want to attend a meeting with an AI notetaker until they have assurances of where and why the data is being stored, and when it will be deleted, Pluymers said. They can also ask if there is a policy and written consent form to sign.
If an AI notetaker shows up at a meeting unexpectedly, a participant could say, “I prefer we keep this meeting without AI recording or transcript tools and I’d be happy to take my own notes and share a recap if that’s helpful,” Pluymers suggested. “Just being warm and genuine about it and asking them to respect your wishes.”
Know where your data goes
When working with AI notetaking apps, find out whether the companies that built them retain recordings, transcripts or metadata indefinitely or use them to train AI models, said Danielle Kays, a partner at Fisher Phillips who represents businesses on privacy and employment law matters.
“If there is some sort of speaker ID or voice recognition, really understand what that is and how it works,” Kays said.
Even when content is deleted, metadata about meetings can remain stored with the vendor, meaning sensitive business information could influence how the model behaves and in some cases could be memorized or reproduced, she said.
AI notetakers generate text, and that’s easier for outsiders to search through than video or audio files, according to EFF.
“Storing a bunch of video isn’t easy, it’s costly and hard to look through, but text is much easier to search and cheaper to store,” said Klosowski of the Electronic Frontier Foundation.
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Share your stories and questions about workplace wellness at [email protected]. Follow AP’s Be Well coverage, focusing on wellness, fitness, diet and mental health at https://apnews.com/hub/be-well
World
Argentinian flight instructor jumps to death from plane, 22-year-old student forced to land alone
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A flight instructor jumped to his death out of a small aircraft over Argentina, forcing the student pilot he was teaching to land the plane herself.
Leandro Andrés Bertazzo, 42, was on board a two-seat Cessna 150G on Saturday when he made the decision to jump out over the province of Córdoba, according to CNN, which cited its Argentinian affiliate TN.
“He made this tragic decision on board an aircraft with another person by his side,” Eduardo Álvarez, director of the Flying Parrot Córdoba flying school where Bertazzo worked, told TN. “It’s impossible to think about it or understand it, but the human mind is so complex.”
An undated photo of Leandro Andrés Bertazzo, a 42-year-old pilot who jumped to his death from a plane on Saturday, July 4 in Argentina. (Instagram/Leandro Bertazzo)
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Rosario, the 22-year-old student, later told authorities that Bertazzo told her, “You know what you have to do, carry on,” before taking off his gear, opening the door and leaping out, according to Álvarez.
Opening the door of a plane midair is incredibly difficult. Álvarez said it would be akin to trying to open the door of a car traveling 124 miles per hour.
Cessna 150m FRA150M climbing out after take-off with flaps deployed and hills behind. (aviation-images.com/Universal Images Group via Getty Images)
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Álvarez said that Rosario managed to land the plane safely, despite being in “complete shock.” There was no damage to the plane, according to TN.
Álvarez noted that Bertazzo had gone on a flight with another student earlier in the day.
A view from the main road of the flight school Bertazzo worked at, Flying Parrot Córdoba. (Google Maps)
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Álvarez also told TN that Bertazzo had visited a psychiatric institute, something that was only known by his family prior to his death.
Prosecutors in Córdoba will lead the investigation into Bertazzo’s death. The plane he jumped from is now in police custody.
World
Former US Olympian pleads not guilty in DC reflecting pool vandalism case
Former Olympic canoeist David Hearn denies damaging US President Donald Trump’s Washington, DC reflecting pool renovation.
Published On 9 Jul 2026
A former US Olympian has pleaded not guilty to vandalising the newly renovated Lincoln Memorial Reflecting Pool, in a case that has drawn national attention amid accusations that the administration of US President Donald Trump is trying to shift blame for a troubled renovation.
David “Davey” Hearn, a 67-year-old three-time Olympic canoe racer, entered his plea in federal court on Thursday after prosecutors accused him of “maliciously” damaging the “American flag blue” lining installed at the bottom of the reflecting pool at Trump’s request ahead of celebrations taking place at Washington’s National Mall for the 250th anniversary of the United States’ independence on July 4.
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Federal prosecutors allege Hearn pulled at the liner on June 19, causing more than $1,000 in damage. He has been charged with destruction of government property, an offence that carries a maximum prison sentence of 10 years.
Hearn denied the allegations. He admitted he stopped at the pool during a bike ride, reached inside and touched a section of lining that was already peeling away, but that he did not remove or damage it. He told The Associated Press he let go when a park employee told him to stop.
Hearn’s lawyers argue the prosecution is an attempt by the Trump administration to deflect attention from what they describe as a botched renovation project.
“This indictment reflects the administration’s effort to shift blame for their own failures,” they said in a statement. “The justice system exists to determine facts, not to provide political cover.”
The 620-metre (2,030-foot) reflecting pool reopened in June after Trump ordered the new liner to be installed across the bottom. He said he was compelled to go ahead with the $14.7m renovation after a friend visiting from Germany called the pool dark and disgusting.
But within days, algae began to spread across the surface, the water turned chartreuse green, and sections of the liner began peeling away.
Experts have explained that the dark new coat of paint at the bottom of the pool would elevate the temperature and allow algae to grow, and that algae blooms in water are common at this time of year, especially in shallow, stagnant water like that of the pool.
Trump blamed the issues on vandals, claiming without evidence that “corrosive and destructive chemicals” were poured into the pool and that vandals “took some form of knife or blade” and put a long “gash into the beautiful facade”, although no one has been charged over those alleged acts.
The US president warned that anyone who allegedly damaged the pool could face long prison terms. “Please remember that there is a 10 year prison sentence for the destruction, or even the attempted destruction, of such things — Which will be fully enforced!” he wrote on Truth Social.
Last week, US Attorney for the District of Columbia Jeanine Pirro announced the indictment against Hearn, accusing him of intentionally damaging the liner.
The US Department of the Interior has said that at least six people were arrested on suspicion of vandalising the pool in the weeks after it reopened. National Guard troops and US Park Police were deployed to protect the site, which was fenced off during July 4 celebrations.
Thursday’s hearing drew a packed courtroom, with dozens of supporters waiting outside after Hearn entered his plea.
The reflecting pool’s problems have continued, with Trump acknowledging it will need to be drained again so the damaged liner can be repaired.
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