State security organs and public security departments have busted an illegal group which attempted to endanger China's national security in the name of defending human rights. Several suspects including a man from Sweden were detained, Xinhua News Agency reported on Tuesday.

Investigations showed that Peter Dahlin from Sweden and Wang Quanzhang, previously a lawyer at a law firm in Beijing, jointly established an agency called Joint Development Institute Limited in Hong Kong in August 2009.

They carried out activities in China in the name of providing aid for those in need of help while defending rights, without registering and reporting to the Chinese government. In this way, they tried to avoid governmental supervision of their activities and their use of funds.

Xinhua said Dahlin's group has been receiving financial support from seven overseas organizations. During the past several years, the group set up more than 10 so-called legal aid centers, trained several illegal lawyers without license and ignited petitioners' hatred toward the Chinese government.

The group took advantage of these people to collect negative information about China in different fields and aspects. By distorting, exaggerating information and making up facts, the agency provided so-called "human right reports" to organizations overseas.

Security departments said other suspects of the group detained, including a man surnamed Wang and a man surnamed Xing, confessed that Dahlin's group received a total 10 million yuan ($1.5 million) from overseas organizations, trying to discredit China and disturb the social order of the country.

Dahlin was detained on Jan 3 and received residential surveillance. On Saturday, he was allowed to meet staff from the Swedish Embassy to China.

The case remains under further investigation.