Beijing tycoon gets life prison sentence for 600m-yuan fraud
By Jane Chen |
March 23, 2010, Tuesday
|
Print Edition
Print Edition
A BEIJING property tycoon has been sentenced to life in prison after defrauding 600 million yuan (US$87.9 million) of mortgage loans and squandering most of the money.
Two officials of the bank that issued the loans have been sentenced to 20 and 19 years for concealing the truth after learning they were cheated, resulting in a loss of 156 million yuan for the bank, yesterday's Beijing News reported.
Xie Genrong, legal representative of Beijing Yanshan Walson Enterprise Group, mobilized his staff to raise funds after winning a new housing project in September 2000, the report said.
He had the workers and their friends create 555 mortgage contracts valued at 663 million yuan and handed over the loans to the company, with the company to repay the loans.
Only a few of contracts were actually to purchase apartments in the property to be built.
The property was forced to suspend construction in 2003 due to lack of money.
Xie spent most of the loans on himself, the group's vice president surnamed Wu told the court.
He paid several million yuan to rent an office in the Diaoyutai State Guesthouse and 13 million yuan to buy three apartments.
He also bought luxury sedans, including three Mercedes-Benz. He lost 12 million yuan gambling in Macau.
Xie still failed to recover 548 million yuan now.
Yan Linzhuang, former governor of China Construction Bank's Economic and Technology Development Zone unit in Beijing, and Zhao Feng, the unit's vice governor, found out Xie was defrauding the loans.
But they decided to keep it a secret in fear that they could lose jobs if they reported the truth to their superior.
They asked branches under the unit to help Xie's group repay the loans and even dispatched staff to help the group create fake accounting books.
Two officials of the bank that issued the loans have been sentenced to 20 and 19 years for concealing the truth after learning they were cheated, resulting in a loss of 156 million yuan for the bank, yesterday's Beijing News reported.
Xie Genrong, legal representative of Beijing Yanshan Walson Enterprise Group, mobilized his staff to raise funds after winning a new housing project in September 2000, the report said.
He had the workers and their friends create 555 mortgage contracts valued at 663 million yuan and handed over the loans to the company, with the company to repay the loans.
Only a few of contracts were actually to purchase apartments in the property to be built.
The property was forced to suspend construction in 2003 due to lack of money.
Xie spent most of the loans on himself, the group's vice president surnamed Wu told the court.
He paid several million yuan to rent an office in the Diaoyutai State Guesthouse and 13 million yuan to buy three apartments.
He also bought luxury sedans, including three Mercedes-Benz. He lost 12 million yuan gambling in Macau.
Xie still failed to recover 548 million yuan now.
Yan Linzhuang, former governor of China Construction Bank's Economic and Technology Development Zone unit in Beijing, and Zhao Feng, the unit's vice governor, found out Xie was defrauding the loans.
But they decided to keep it a secret in fear that they could lose jobs if they reported the truth to their superior.
They asked branches under the unit to help Xie's group repay the loans and even dispatched staff to help the group create fake accounting books.
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