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Guo Wengui's former executives admit $1.5b fraud

By Cao Yin | chinadaily.com.cn | Updated: 2017-07-12 14:08

Guo Wengui's former executives admit $1.5b fraud

Three defendants stand trial at the Kaifeng Intermediate People's Court in Henan province on Wednesday morning. [Photo provided to chinadaily.com.cn]

Three former executives related with fugitive Chinese billionaire Guo Wengui pleaded guilty on Wednesday to fraudulently securing loans and bankers' acceptances worth nearly 1.5 billion yuan ($225 million).

The defendants, who all worked for Henan Yuda Real Estate, have admitted making fake contracts and investment projects since 2008.

Zhang Xincheng, former financial director; Xiao Yanling, former deputy financial director; Guo Lijie, former deputy manager, are being tried at Kaifeng Intermediate People's Court in Henan province.

It is the second trial in a series related to Guo Wengui, who fled abroad about three years ago.

In June, three former executives of Beijing Pangu Investment, another of Guo Wengui's companies, were sent to prison for fraudulently obtaining loans and foreign currency worth a combined 3.2 billion yuan by using fake materials, seals and contracts in Dalian, Liaoning province.

Interpol issued a "red notice", the closest thing to an international arrest warrant, for the billionaire in April, according to the Ministry of Foreign Affairs.

Guo Wengui's former executives admit $1.5b fraud

Prosecutors present evidence at the trial. [Photo provided to chinadaily.com.cn]

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