Biggest Bank Fraud Case In China

Recently reported in the Chinese Financial magazine, Caijing and Financial Times was the biggest suspected bank fraud case involving the massive sum of 1.43 billion dollars.

Some details:

Persons Involved:

Wang Sheng, ex-chairman of property developer Canton Property Investment Ltd (listed in London’s Alternative Investment Market,

Liu Changming, 45, former president of the state-controlled Bank of Communications’s Guangzhou headquarters( Bank of Communication is 18.6% owned by HSBC)

Wang also known as Keng Wong

About the Fraud:

Wang Sheng assisted by Liu Changming (ex-president of Bank) obtained the loan from state-owned Bank Of Communications vide its subsidiaries of  Canton Properties without the knowledge of shareholders. Wang Sheng is supposed to be the main recipient of the loans.

Status:

Wang Sheng arrested for trial.

Liu Changming, 45, fled China before the end of 2007. He was being transferred to Wuhan and never turned up for his new job.

Wang or Keng Wong was arrested in August last year.

The case involved as much as 9.8 billion yuan (1.43 billion dollars) and # 4.6 billion yuan of the missing funds had not been recovered.

[ Canton Properties' assets, which include two shopping malls in Guangzhou, were valued at 963 million dollars.Canton Properties suspended trading in its shares, which are listed on London's Alternative Investment Market, after Wang disappeared in August 2008 and most of the company's board resigned.]