Guo Wengui firm fined $22m, staff sentenced

A company owned by fugitive Chinese billionaire Guo Wengui has been fined 150 million yuan ($22.3 million) for fraudulently obtaining loans and bill financing fraud, according to a court ruling Friday.

Three staff from Henan Yuda Real Estate Company were found guilty. Two were sentenced to prison terms ranging from 18 months to two years, and the third was exempted from criminal penalty, according to Kaifeng Intermediate People’s Court.

The defendants said they committed the crimes under instruction from Guo, the “actual controlling shareholder” of the company, who fled China in August 2014. He is currently listed under an Interpol red notice for wanted fugitives.

The court said that under instruction from Guo, the three employees 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.

Employee Zhang Xincheng fraudulently obtained loans and committed bill financing fraud worth 1.435 billion yuan. Guo Lijie and Xiao Yanling committed bill financing fraud worth 60 million yuan.

Their behavior disrupted national financial management order and jeopardized financial security, the court said.

Zhang, Guo Lijie and Xiao committed the crimes under the instigation of Guo Wengui, the court said, adding that they were accessories to the crimes and could be shown leniency.

Zhang was sentenced to two years in prison and fined for fraudulently obtaining loans and bill financing fraud.

Guo Lijie was sentenced to 18 months in prison, with a two-year reprieve, for bill financing fraud and also fined. Xiao was exempted from criminal penalty for voluntarily turning herself in and confessing.

The three defendants and the representative of the company accepted the ruling at the court and said they would not appeal.