Guo Wengui"s cocustom paper wristbands cheapmpany on trial for fraudulently obtaining loans

Liu chenyang2018-07-10 07:31:39547Views
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KAIFENG, Henan -- A trial opened Wednesday in Central China"s Henan province on the suspected crimes of Henan Yuda Real Estate Company and three of its employees.

The company and its employees Zhang Xincheng, Guo Lijie and Xiao Yanling are charged with two crimes of fraud, according to Kaifeng City Intermediate People"s Court.

The "actual controlling shareholder" of the company, Guo Wengui, fled China under suspicion of multiple crimes in August 2014 and is currently listed under an Interpol "red notice" for wanted fugitives.

The procuratorate in Henan found that from May 2008 to April 2015, Guo told the three to set up shell companies and fabricate contracts and projects to fraudulently obtain loans and for banks to accept financial bills, worth a total of 1.44 billion yuan (about 211.05 million U.S. dollars).

Part of the money was used to clear Yuda"s debts, while the rest was transferred overseas or to Beijing Pangu Investment. More than 212 million yuan is yet to be recovered.

According to a Chinese court ruling last month, Guo, also the actual controlling shareholder of Pangu, directed three individuals of Pangu to apply for loans from banks using fake contracts, stamps and financial statements.

The three received prison terms for fraudulently obtaining loans and foreign exchange. Pangu was also fined 245 million yuan.


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