Three Chinese indicted in NY for BoC fraud
Three ethnic Chinese were indicted on Friday in Federal District Court in Manhattan on charges that they defrauded the New York branch of the Bank of China out of more than $25 million. This scam is linked to the downfall of the former chairman of the bank, Chinese media said.
Wang, 52, was sentenced to 12 years in prison by a Beijing court last December after being convicted of embezzlement and accepting bribes. He was once seen as a leading mover in the reform of China's state-owned banking industry.
According to the New York Times, Zhou, Liu and Yang were indicted on Friday at the Federal District Court in Manhattan on charges they defrauded the New York branch of the BoC out of more than 25 million dollars from 1991 to 2002.
The paper identified the three by their English names John Chou, 43, and his wife, Sherry Liu, 44, of Alpine, New Jersey, and former BoC bank manager, Patrick Young, 46, of Massapequa, New York.
According to a China Central Television report, Zhou and Liu falsified international trading documents in an effort to secure loans aimed at financing trade transactions that never took place. The couple bribed Yang, the BoC employee, to participate in the scam., and and used their proceeds to extend loans to their businesses and to enrich themselves and their family.
Former BoC chairman Wang was sacked in January 2002 in connection with credit problems at bank branches under his control when he headed the BoC.
During the period of the alleged crimes, Wang served as both general manager of the BoC in New York and later as the president of the bank.
The BoC, China's main commercial foreign exchange bank and one of the big
four state-owned commercial banks, is in the process of transforming itself into
a joint-stock company with a public listing set for some time in 2005.