Cops launch fraud probe as tycoon flees
Print Edition
Police in the southern island province of Hainan have launched an investigation into allegations that a political adviser and renowned businessman illegally raised 1 billion yuan (US$164.7 million) before escaping overseas two weeks ago.
Shen Guilin is also vice chairman of the provincial industry and commerce federation. He leads several industry associations in the fields of auction, collecting and pawn broking.
Many people, relying on Shen’s reputation, felt it safe to “deposit” money in two of his companies — Hainan Taida Action Co Ltd and Hainan Taite Pawn Co Ltd. Shen promised much higher interest rates than those offered by banks, the People’s Daily website reported yesterday.
A man surnamed Zhang said he received due returns as promised by Shen every month over the last two years, but didn’t receive anything this month. He assumed it was just an accounting error until he was told that Shen couldn’t be reached since December 7.
Nearly 100 people across the nation gathered at offices of Shen’s companies on Wednesday morning. Their representative surnamed Li said some have “lent” Shen tens of millions of yuan. An insider, who was not identified, said some victims were government officials.
Shen was alleged to have fled overseas, but police refused to confirm it. Police said they had frozen Shen’s personal and his companies’ bank accounts.
But there was not much money left in these accounts and Shen’s properties were registered as mortgage, the so-called investors wer told, leading to the assumption that Shen had planned to flee very early, the report added.
His profile reveals that Shen quit a government job in eastern Jiangsu Province in 1992. Three years later, he entered the pawn broking industry. In 2000, his first pawn shop was established in Hainan. In 2004, he started his own auction business.
- 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.
