International Law

China?s Largest Bank Fraud Case

By Stan

To round out today’s crime news, here’s a fraud case that could involve as much as RMB 9 billion.

Details are emerging of China?s largest suspected bank fraud after the former chairman of a company listed on London?s Alternative Investment Market appeared in a Chinese court last week.

Prosecutors in the southern Chinese city of Guangzhou allege that Wang Sheng, former chairman of Canton Properties, a prominent developer in southern China, obtained about Rmb4.8bn ($702m) of illegal loans from Bank of Communications, a state-controlled lender 18.6 per cent owned by HSBC. (FT)

Given the amount of money involved, if a guilty verdict comes back without a very stiff penalty (see my first post today), you are definitely going to see some cranky folks complaining on the Chinese Intertubes.

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Full post as published by China Hearsay on August 06, 2009 (boomark / email).