1st man charged for illegal profit in forex fraud
Print Edition
A private company boss became the first man in Shanghai to be charged in a foreign exchange fraud case of making an illegal profit of 10 million yuan (US$1.6 million).
Prosecutors in Shanghai’s Pudong New Area alleged that Wang illegally profited when he cheated banks by forging contracts for intermediary trade, which allowed him access to foreign currency loans, between August 2012 and May 2013.
After he received US$350 million in foreign currencies during that period, Wang placed the money in a company owned by him in Hong Kong. He then transferred the money to the Chinese mainland to take advantage of the yuan deposit rate that is higher than the foreign currency lending rate.
Wang is alleged to have earned a total of 10 million yuan in illegal profit, the prosecutors said in a statement yesterday.
The Shanghai branch of the State Administration of Foreign Exchange detected the abnormal flow in funds in July 2013 and passed the case to the police.
The case marked increased cooperation between prosecutors and regulators to fight financial crimes.
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