Former executives confess to fabricating financial documents at Guo Wengui's order

Source:Globaltimes.cn Published: 2017/6/9 12:55:31

Photo: Courtesy of Dalian Xigang District People's Court

Photo: Courtesy of Dalian Xigang District People's Court

 

Chief executives who served under fugitive billionaire Guo Wengui confessed in court on Friday that they had fabricated contracts and other financial documents under Guo's orders. 

Guo was involved in multiple corruption cases and fled China in 2015. 

Yang Ying, a former financial officer at Beijing Pangu Investment, Lü Tao, former deputy general manager of Pangu Investment, and Xie Honglin, another former financial officer at Pangu, stood trial on Friday in Xigang District People's Court in Dalian, Northeast China's Liaoning Province. 

The trial was broadcasted live on the Sina Weibo account of the Xigang district court. 

According to the indictment, which was made public on the court's Weibo account, Guo in 2010 had ordered Yang, Lü and Xie to fabricate contracts with construction company Cheng Jian Wu and forge the seals of that company in order to obtain a loan from the Agricultural Bank of China. The indictment also states Guo's Pangu Investment submitted falsified receipts showing that the loan had been received by the construction company, Cheng Jian Wu, but in fact, the money had been directed back to Pangu's bank accounts, therefore showing the loan had been spent on projects different from what it had originally stated. 

According to financial magazine Caixin, the downfall of China's top insurance regulator, Xiang Junbo, is allegedly related to Guo. Caixin quoted anonymous sources as saying that Xiang, then board director of Agricultural Bank of China, approved a loan worth 3.2 billion yuan to Guo's company in 2010.

The indictment also accuses Lü and Xie of fraudulently obtaining foreign currency under Guo's demand. The indictment claims that Lü and Xie in 2012 falsified contracts and receipts through a company run by Guo's son to buy $13.5 million worth of foreign currency and sent the money to a Hong Kong account so that Guo could purchase his second private jet. 

The indictment said Guo Wengui and his son, Guo Qiang, will be dealt with in a separate case.

The trial has adjourned and the verdict will be announced at an undisclosed time.

Posted in: SOCIETY,LAW

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