1.5b yuan lending fraud trial begins

Updated 2017-03-31 09:31:03 Shanghai Daily

A high-profile financial fraud trial — involving 1.5 billion yuan (0 million) of investor savings — started at Xuhui District People's Court of Shanghai yesterday.

Fifteen former employees of the now-defunct online peer-to-peer lender Jinxing Investment were on trial. Ji Jianhua, the company's chief financial officer, was accused of illegally raising funds, and 14 senior managers have been accused of illegally absorbing public savings.

Part of the cash Jinxing received was diverted to personal or related accounts controlled by the company's president Wang Mian, while investment projects promised to investors were all faked, Ji told the court yesterday.

Prosecutors said there were still 400 million yuan of repayments that weren't made in the wake of the case being exposed.

Operated by Shanghai Uprosper Asset Management Co and established on August 2014, Jinxing Investment offered short-term, peer-to-peer lending products promising high rates of return, the prosecutors said.

Investors flocked to sign up online, enticed at the prospect of higher returns than bank deposits offered, as well as easier access to loans than the banks allowed.

Wang, who hasn't been found since the company's liquidity risks unfolded last June, grabbed some 160 million yuan belonging to the company before his escape, the court heard.

Jinxing was shut down after Wang's disappearance and Ji's surrender to the local police last June.

More than 200 investors gathered in court in Xuhui for the hearing yesterday, many of them elderly investors. Trials of the 14 senior managers would be held at a later date, the court said.

By the end of December, about a third of the nearly 4,000 Chinese peer-to-peer platforms were found to have been involved in fraud, according to Yingcan Group.

The lack of adequate regulation and the often dubious legitimacy of how the platforms operated were among reasons for the losses.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58July 23 2018 06:04:12

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16July 23 2018 06:04:12

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18July 23 2018 06:04:12

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords