Bank fraudster gets life after $1.64b swindle

A local court has sentenced the former president of a Shanghai-based investment management company to life imprisonment for forging financial documents to obtain massive amounts of money from various banks and companies.

According to a report by The Beijing News over the weekend, 45-year-old Liu Jiyuan, who was accused of swindling 10.13 billion yuan ($1.64 billion) between 2008 and 2010 from several companies and banks, including Qilu Bank, was given a life sentence by the Jinan Intermediate People's Court in East China's Shandong Province on Friday.

The court found that Liu forged seals and faked loan materials and company checks to obtain billions of yuan. Liu also pretended to be bank staff to illegally obtain deposits from companies.

After Liu was exposed in late 2010, 8.29 billion yuan was retrieved.

Victims in the case included Sino Life Co, Sunshine Insurance Group Corporation and State-owned Shandong Energy Zaozhuang Mining Group, which suffered huge losses after they deposited their money in the banks Liu claimed he worked for.

Some local bank staff, State-owned company heads and government officials have also been fired and investigated by authorities in connection with the case, but were not charged.