Boss who 'stole millions' goes on trial
A company boss who has been charged with swindling nearly 1.4 billion yuan (US$170 million) went on trial yesterday in Beijing.
The 49-year-old Liu Fuchen, the chief managing officer for 10 Beijing-based companies, is accused of embezzling 536 million yuan (US$65 million) in treasury bonds. He is also accused of taking 670 million yuan (US$81 million) in cash and defrauding 165 million yuan (US$20 million) from banks between 1997 and 1998.
Liu denied the accusations made by the prosecutor at the trial, which is taking place at the Beijing No 2 Intermediate People's Court.
"As the assistant manager of the companies, I did my work under the instruction of the manager Guan Ronghua," he said.
"Indeed, I did not know the real condition of the companies at all," Liu claimed.
He was arrested by police in 2003.
It is expected that the hearing will continue today and tomorrow due to the complexity of the case, sources with the court said.
After an introduction from Liu, a business office of Beijing Securities signed a contract in 1996 with a Hunan-based stock sales office to act as an agent for treasury bond sales.
According to the contract, all the sales revenue was transferred to Liu's account by the Beijing Securities business office, which received transaction fees, it is claimed.
Liu acquired 446 million yuan (US$54 million) in two instalments in this way from 1997 to 1998.
Shi Xinji and Yan Yuqing, managers of the Beijing Securities business office, also embezzled another 90 million yuan (US$11 million) from government bond trading with an insurance company at their office.
That fund was transferred to Liu's account as well, according to the indictment.
The public prosecutor also said that Liu colluded with Feng Jun, a top official with a China Everbright Bank branch in 1997.
Feng illegally transferred 41 instalments of savings, amounting to over 670 million yuan (US$81 million), to Liu's account.
Liu also asked the Beijing Securities business office to provide fake guarantees for five companies operated by him.
Using the guarantees, the defendant swindled a branch of the China Everbright Bank out of 165 million yuan (US$20 million) in 1998, according to the charge.
The public prosecutor said that Liu had committed the crimes of misappropriating public funds and contractual fraud.
(China Daily 03/02/2005 page3)