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Financial fugitive's associates indicted

2017-06-19 07:39:00 (Beijing Time)         Chinadaily.com.cn

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Prosecutors have indicted some employees of two companies connected to Interpol "red notice" criminal suspect Guo Wengui, judicial sources said Saturday.

A procuratorate in Dalian, Liaoning province, filed charges on Friday against several executives and employees of Beijing Pangu Investment Co on suspicion of abuse of power and misappropriation of funds.

The same day, Kaifeng People's Procuratorate, in Henan province, initiated a public prosecution against Guo's Henan Yuda Real Estate Co and its employees, on charges of defrauding loans and bills of acceptance.

The procuratorate in Dalian found that in 2008, the wife of Tianjin Huatai Holding Groups then-chairman Zhao Yun'an approached Guo Wengui to arrange Zhao's bail.

With Guo's help, Zhao was granted bail, and he promised to transfer Huatai's assets to Guo, giving him control of the company.

In July 2008, without calling a board meeting, Guo directed Qu Long, a defendant in the case and former Huatai executive, to transfer more than 400 million yuan ($58.74 million) to companies Guo controlled.

In 2012, Guo sought to keep that money by persuading Gao Song, Ma Nan and Cheng Xiuhua, all former senior Beijing Pangu Investment Co managers, to forge agreements and memorandums and file a false civil court action.

Guo transferred liabilities worth more than 400 million yuan to Zhengzhou Haohang Co, which has no loan repayment capacity, so he could illegally pocket the money.

Qu is accused of using his posts to misappropriate a huge amount of corporate funds, and the other three defendants are accused of abuse of power for assisting Guo's illegal seizure of Tianjin Huatai's capital.

In the other case, the procuratorate in Henan province found that in 2008, Guo directed Ma Cheng, Zhang Xincheng, Guo Lijie and Xiao Yanling, all former Henan Yuda Real Estate Co senior staff members, to fraudulently obtain loans and bills of acceptance totaling 1.5 billion yuan from seven banks by setting up shell companies and fabricating contracts and projects.

Part of the money was used to clear debts of Yuda, which Guo controlled, and the rest was transferred to Beijing Pangu Investment Co or overseas. More than 213 million yuan has not been recovered.

In the other case, the procuratorate in Dalian found that three Beijing Pangu Investment Co staff members are suspected of destroying accounting evidence on Guo Wengui's instructions.

Guo Wencun, Ma Cheng and Sheng Ruigang were found to have destroyed accounting documents, books and reports of Beijing Pangu international hotel between 2008 and 2013, to prevent discipline inspectors from detecting corruption.

Last week, three former members of Beijing Pangu Investment Co were given prison sentences for fraudulently obtaining loans and foreign exchange.

Senior executive Lyu Tao was sentenced to two years and three months in prison, and Xie Honglin and Yang Ying both received two-year prison sentences suspended for three years, by the People's Court of Xigang District of Dalian on Friday.

The company was fined 245 million yuan.