Charges Chinese fugitive Guo Wengui faces: media reports
Published: Aug 10, 2017 06:46 PM
Fugitive Chinese billionaire Guo Wengui has been charged with at least eight crimes according to media reports. 

Guo fled China under suspicion of multiple crimes in August 2014. He is currently listed under an Interpol "red notice" for wanted fugitives, according to Xinhua. 

1. Suspicion of bribery

In 2011, when Guo secured the controlling rights to China Minzu Securities, he misappropriated money several times, Caixin said. Notably, in 2014, he diverted 2.05 billion yuan from Minzu. Currently, 1.74 billion yuan remains missing.
Ma Jian, the former State security vice-minister, provided shelter for Guo, Beijing News reported.
Ma was placed under investigation in January 2015 for allegedly taking bribes and interfering in law enforcement activities.
In a video obtained by the newspaper, Ma confessed that he had offered assistance in Guo’s business deals many times from 2008 to 2014, and Guo had given him bribes totaling about 60 million yuan. 

In 2008, Guo reportedly violated government rules during the construction of a commercial project in Beijing and could have been ordered to demolish it by the construction authorities. But Ma intervened, Beijing News reported.
Guo reportedly asked Ma for help and Ma instructed his subordinates to ask the authorities for a favor in his name. Subsequently, instead of being forced to demolish the project, Guo was simply fined for the violations. 

In return, Ma and his sister gained huge profits through the projects developed by Guo’s company, the newspaper reported. It said Guo also bought two houses for Ma in Hong Kong.

2. Suspicion of raping women

According to sources close to people investigating cases related to Guo, Guo was allegedly to have raped female employees for multiple times, according to Beijing News report on its WeChat account on April 19. 

3. Suspicion of fraudulently obtaining loans

Evidence showed that fugitive Guo Wengui, who controlled Beijing Pangu Investment Company, directed his former three employees to apply for loans from banks with fake contracts, stamps and financial statements, which disturbed financial order and threatened financial security, said the ruling of the People's Court of Xigang District in northeast China's Dalian. 

Guo took out a fraudulent loan of 3.2 billion yuan ($464 million) from the Agricultural Bank of China (ABC) using forged official seals, counterfeit contracts and fake invoices, the Beijing News reported.

According to the newspaper, Guo instructed former deputy general manager of Beijing Pangu Lü Tao to forge the seals of a construction company, and then faked contracts with the company for the construction and interior decoration of his real estate development near National Stadium — Pangu Plaza, which is known for its dragon-shaped building.

Guo also asked chief financial officer of Beijing Pangu Yang Ying to fabricate a "decent" financial statement so it would pass the bank's credit check.

After the loan was granted, Guo used 1.6 billion yuan to buy controlling rights in China Minzu Securities. He also allegedly channeled 600 million yuan via underground banks to Hong Kong, and he spent 70 million yuan for a Hong Kong villa.

Guo managed to pay back the 3.2 billion yuan loan by borrowing money from other sources in 2014, four years ahead of the deadline "because we feared more irregularities would be found if the audit continued," Yang was quoted by Beijing News as saying.

According to the Kaifeng Intermediate People's Court in July, under instruction from Guo, his three employees from Henan Yuda Real Estate Company violated regulations and fraudulently obtained loans and bill acceptance worth a total of 1.495 billion yuan. More than 212 million yuan in loans has yet to be recovered, Xinhua reported. 

4. Suspicion of duty-related encroachment 

Prosecutors in Dalian found that in 2008 to get Zhao Yun'an, then chairman of Tianjin Huatai Holding Group Ltd, out of jail, Zhao's wife approached Guo through an intermediary to bail out Zhao. Zhao was granted bail, but promised to transfer Huatai's assets to Guo, who was able to take control of the firm. 

In July 2008, without calling a board meeting, Guo directed Qu Long, former executive of Huatai, to transfer more than 400 million yuan ($60 million) to companies controlled by Guo.  

In the Henan case, prosecutors found that in 2008 Guo directed all former senior staff of Henan Yuda Real Estate Company to fraudulently obtain loans and bill 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 Yuda's debts, which was controlled by Guo, while the rest was transferred to Beijing Pangu Investment Company or overseas. Some 213 million yuan has yet to be recovered.

5. Suspicion of intentionally destroying accounting statements

The procuratorate in Dalian City found three staff with Beijing Pangu Investment Company are suspected of destroying accounting evidence on the instructions of Guo Wengui, according to Xinhua report.

Guo Wencun, Macheng 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, the report said.

6. Suspicion of fraudulently obtaining foreign exchange

Dalian prosecutors charged Lü Tao and Xie Honglin, employees of Beijing Pangu Investment Co. Ltd, with fraudulently obtaining foreign exchange totalling 13.5 million US dollars from the Bank of Communications by using falsified furniture import contracts and invoices in 2012. A company controlled by Guo Qiang, the son of Guo Wengui, was used in the fraud, Xinhua reported. 

The money was later transferred to a Hong Kong company for Guo Wengui to buy private aircraft, according to the report. 

7. Suspicion of defamation

A Chinese vice minister has joined the list of those who have sued fugitive billionaire Guo Wengui in New York, court records show. 

Huang Yan, a Chinese Vice Minister of Housing and Urban-Rural Development, sued Guo for defamation and intentional infliction of emotional distress on July 19 before the New York State Supreme Court, according to court records. 

She is the highest-ranking Chinese official to sue Guo in a US court.

So far, multiple cases have been brought against Guo in the New York State Supreme Court. 

Tung is also representing six Chinese companies and four other plaintiffs, demanding debt repayment of more than 10 billion yuan ($1.5 billion). Tung likewise represents nine other Chinese companies, mostly in construction, to try to retrieve $40 million from Guo. 

Chinese movie star Fan Bingbing announced on her Sina Weibo account on July 13 that she was suing Guo in the US for defamation. Another Chinese actress, Xu Qing, has also vowed to sue Guo if he refuses to apologize or delete relevant posts.

Chinese financial magazine Caixin and real estate tycoon Pan Shiyi are also engaged in legal disputes with Guo.

8. Suspicion of illegally acquiring private information

Guo Wengui fabricated stories about sex and corruption based on information he illegally acquired by bribing air traffic control staff and an airline worker, the Xinhua News Agency reported.  

Song Jun, 47, who had been working for civil aviation air traffic control for more than 20 years, said he helped Guo acquire information on passengers of Hainan Airlines' (HNA) corporate jets. 

Song said he agreed after Guo promised to buy him a house in the UK, help Song's business and take care of Song's daughter who was studying abroad at the time. 

Song contacted his acquaintance Ma Cong, a duty manager of the HNA Group's corporate flight subsidiary, Deer Jet. Ma provided Song with information on 146 people between December 2015 and March 2017, Xinhua reported. 

Xinhua quoted Song as saying that Guo made up stories based on the information he had provided. 

Source: Xinhua, Global Times, China Daily