Gang arrested for US$8.6m logistics scam
Print Edition
SEVEN members of a gang suspected of cheating freight companies out of more than 53 million yuan (US$8.6 million) have been arrested, Hongkou District police said yesterday.
The group’s alleged activities came to light in July, when police received reports from six freight companies that they were owed a combined 10 million yuan by a logistics firm known as Jinkun.
A police investigation discovered that Jinkun was a shell company set up by the gang with the apparent aim of defrauding freight forwarders.
The victims claimed they signed transport contracts with Jinkun and had carried freight for the company.
“They got our attention by offering to pay more than the market rate, then won our trust by making the first repayment on time,” said a man surnamed Zhang who manages a company that was allegedly cheated out of 5 million yuan by Jinkun.
“They even employed experienced freight clerks who were known to our staff,” Zhang told Shanghai Daily.
After conducting his own investigation, Zhang said he managed to identify Jinkun’s owner — a woman surnamed Cui — and approached her for the money he was owed.
Cui, however, allegedly told him that she had debts of nearly 8 million yuan and needed more time to balance her books.
“The freight industry is not as profitable as it once was, so it’s common for customers to ask for a payment extension of a few months,” Zhang said.
But when no payments were forthcoming, Zhang went to police.
A subsequent investigation identified two other companies — Zhuohang and Tianmao — operating in a similar manner to Jinkun.
Police said they discovered that all of the money earned by the three firms was being transferred to a fourth, named Huajia.
On October 17, police tracked down the owner of Huajia — a man surnamed Zhu — and identified him as the head of the criminal gang.
A total of 10 of his associates were also detained.
Most of the clerks used by Jinkun, Zhuohang and Tianmao were recruited by Huajia, police said.
Zhu allegedly told police that he paid drug users and people with money problems to register or buy shell companies on his behalf, then recruited clerks with experience of the freight industry to run them.
He also said that to avoid detection he ran the businesses for no more than three or four months before closing them down, police said.
Prosecutors approved the arrest of seven members of the gang, but didn’t say what had happened to the other four.
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