Executives on trial on fraud charges
Print Edition
EXECUTIVES at a debt-stricken firm accused of cheating investors out of 100 million yuan (US$15.3 million) stood trial yesterday at Shanghai No. 1 Intermediate People’s Court.
Prosecutors said that due to lack of operating capital, Lu Wenxuan, Lu Hanwang and Lu Huaguang of Zhonghengtong (Fujian) Machinery Manufacturing Co, a company based in southeast China's Fujian Province, decided to issue bonds to raise funds.
All three conspired with an auditor to make a false financial report for the year 2013, in which the firm’s revenues were exaggerated to 513 million yuan and its debts of 20.25 million yuan eliminated.
As a result, Zhonghengtong was allowed by the Shanghai Stock Exchange to issue private bonds in 2014. Two banks, whose names were not disclosed, and an individual surnamed Che bought bonds worth a total of 100 million yuan, prosecutors told the court.
In 2016, the bonds reached maturity, but the firm was unable to pay, prosecutors said.
The court has not issued a verdict.
Zhonghengtong, founded in 2008, has been undergoing a court-ordered bankruptcy restructuring since September 2016. It is currently under the management of Fujian-based law firm Tenet and Partners, which is seeking new investors from the public.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
