Fugitive blamed as trio admit fraud
Print Edition
A REAL estate company and three of its employees stood trial on fraud charges in central China’s Henan Province yesterday.
Henan Yuda Real Estate Company, Zhang Xincheng, Guo Lijie and Xiao Yanling told Kaifeng City Intermediate People’s Court that they committed the crimes under direction from Guo Wengui, one of China’s most-wanted fugitives.
Guo, the “actual controlling shareholder” of the company, fled China under suspicion of multiple crimes in August 2014 and is currently on an Interpol list of fugitives.
Prosecutors in Henan said that from May 2008 to April 2015, Guo instructed Ma Cheng, then deputy general manager of the company, and the three who are standing trial to set up 10 shell companies and fabricate contracts and projects to fraudulently obtain loans, and for banks to accept financial bills, worth a total of 1.435 billion yuan (US$211 million).
Part of the money was used to clear Yuda’s debts, while the rest was transferred overseas or to Beijing Pangu Investment. More than 212 million yuan has yet to be recovered.
During the trial, evidence including witness statements and opinion was presented, with defendants not objecting to the charges.
They expressed regret and pleaded guilty.
The defendants asked for leniency, saying their actions were made at the instruction or suggestion of Guo.
“Since being investigated, I have often stayed awake all night, questioning myself,” said Zhang in his final statement.
Zhang blamed his predicament on being unaware of the law and blind compliance with Guo and Ma’s instructions.
“I feel extremely regretful and grieved about my crimes,” Zhang said.
Yesterday’s trial is the second court proceeding in a series of cases involving Guo.
Over 60 people attended, including families of the defendants, legislators, political advisers, journalists from home and abroad, and members of the public.
Transcripts and footage of the session were broadcast by the court on its Weibo account.
It said that it would announce verdicts in the case at a later date.
To protect the defendants’ rights and interests, a pre-trial conference was held, attended by the prosecution, defendants and their lawyers.
According to a court ruling last month, Guo, also the actual controlling shareholder of Pangu, directed three individuals of Pangu to apply for loans from banks using fake documents.
They received prison terms for fraudulently obtaining loans and foreign exchange.
Pangu was also fined 245 million yuan.
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