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Man tried for 260m yuan fraud scheme
By Li Xinran |
February 7, 2009, Saturday
|
Print Edition
Print Edition
A DRIVER of government officials in eastern China's Zhejiang Province has stood for trial as the suspected principal of a Ponzi scheme worth 260 million yuan (US$38.04 million) involving several government workers.
Lu Weiqiang, a government-employed driver in Zhejiang's Lishui City, surrendered to police on April 24 last year for allegedly being unable to return funds and interests to investors who participated in his scheme, according to Xinhua news agency.
Lu was reported to have raised more than 260 million yuan in four years and caused a total loss of 40 million yuan.
With the help of several senior officials in Lishui, Lu expanded his business to local enterprises and successfully persuaded many to invest in his scheme, the report said.
A police investigation showed Lu raised the funds from 28 individuals and companies for so-called construction project bids, bank loans and international trade among other dubious concerns, and promised investors monthly returns ranging from 2 to 12 percent.
A task force set up by local police seized Lu's personal assets, which totaled about 10 million yuan, and found that Lu had lost more than 20 million yuan in casinos in Macau, and spent 6.1 million yuan purchasing land for building factories, which hadn't opened for business yet. He also bought cars and houses.
Discipline and inspection authorities in Lishui intervened in the investigation of Lu's scheme as several officials were involved.
Chen Weida, vice director of Lishui's public security bureau, raised funds from his relatives and friends and loaned them to Lu. He also persuaded some local companies to invest in Lu's scheme.
Li Feng, vice director of Lishui's land and resources bureau, helped Lu acquire 10.2 million yuan from companies such as Zhejiang King Dragon Real Estate Investment Co, together with Wu Yi, deputy secretary of the Committee of Political and Legislative Affairs of the Communist Party of China's Lishui Committee.
Lin Bin, head of the personnel division of the general office of the committee, accepted money from Lu for raising investment for him.
Chen and Lin were sacked and received disciplinary warnings from the Party. Li and Wu were given warnings.
Lu Weiqiang, a government-employed driver in Zhejiang's Lishui City, surrendered to police on April 24 last year for allegedly being unable to return funds and interests to investors who participated in his scheme, according to Xinhua news agency.
Lu was reported to have raised more than 260 million yuan in four years and caused a total loss of 40 million yuan.
With the help of several senior officials in Lishui, Lu expanded his business to local enterprises and successfully persuaded many to invest in his scheme, the report said.
A police investigation showed Lu raised the funds from 28 individuals and companies for so-called construction project bids, bank loans and international trade among other dubious concerns, and promised investors monthly returns ranging from 2 to 12 percent.
A task force set up by local police seized Lu's personal assets, which totaled about 10 million yuan, and found that Lu had lost more than 20 million yuan in casinos in Macau, and spent 6.1 million yuan purchasing land for building factories, which hadn't opened for business yet. He also bought cars and houses.
Discipline and inspection authorities in Lishui intervened in the investigation of Lu's scheme as several officials were involved.
Chen Weida, vice director of Lishui's public security bureau, raised funds from his relatives and friends and loaned them to Lu. He also persuaded some local companies to invest in Lu's scheme.
Li Feng, vice director of Lishui's land and resources bureau, helped Lu acquire 10.2 million yuan from companies such as Zhejiang King Dragon Real Estate Investment Co, together with Wu Yi, deputy secretary of the Committee of Political and Legislative Affairs of the Communist Party of China's Lishui Committee.
Lin Bin, head of the personnel division of the general office of the committee, accepted money from Lu for raising investment for him.
Chen and Lin were sacked and received disciplinary warnings from the Party. Li and Wu were given warnings.
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