AgBank’s Kunming Sub-Branch Is Cheated of USD145 Million; Account Manager Involved

Yicai

2016-12-06

(Yicai Global) Dec. 6 -- Yunnan Star Long March Investment and Development Holding Group Co. is charged with taking CNY1 billion (USD145 million) in fraudulent loans and acceptance bills from the Agricultural Bank of China Ltd.’s [SHA:601288] Chuncheng sub-branch in Kunming.

The defendant was charged with cheating huge amounts of money from the state-owned bank with the help of one of its bank account deputy managers, and by using fake contracts and property ownership certificates and other false materials.

Star & Long March was charged with receiving six loans of more than CNY270 million and 34 bank’s acceptance bills of more than CNY990 million from the Chuncheng sub-branch from August 2013 to January 2015, according to state-run news agency Xinhua. The firm only repaid CNY30 million of the loans and deposited CNY270 million for the acceptance bills.

The company’s suspected fraudulent loans from the sub-branch were far more than the above mentioned. The contracts, property ownership certificates and bank deposit receipts submitted by the company to the bank were all fake, and even some properties used for mortgage loans were already mortgaged to other banks.

Li Ning, bank account deputy manager in the Chuncheng sub-branch was also prosecuted. As an insider, Li was a key figure in the crime. Star & Long March, through three of its affiliates, transferred the commission of CNY3 million to Li’s bank account four times.