A trial connected to Interpol "red notice" criminal suspect Guo Wengui opened on Wednesday in central China's Henan Province. The case centers on the suspected crimes of Guo's Henan Yuda Real Estate Company and three of its employees.
According to the Kaifeng Intermediate People's Court, the company and its employees Zhang Xincheng, Guo Lijie and Xiao Yanling are accused of fraudulently obtaining loans and bill acceptance.
The procuratorate, or prosecutor's office, said that in 2008 Guo directed the former senior staff of Henan Yuda Real Estate Company to fraudulently obtain loans and bill acceptance totaling over 1.4 billion yuan (210 million U.S. dollars) from seven banks by setting up 10 shell companies and fabricating contracts and projects.
Part of the money is alleged to have been used to clear the debts of Yuda which was controlled by Guo, while the rest was transferred to Beijing Pangu Investment Company or overseas. More than 212 million yuan (31.23 million U.S. dollars) is yet to be recovered.
A procuratorate in Dalian city in northeastern China last Friday filed a public lawsuit against several executives and employees of Beijing Pangu Investment, on suspicion of duty encroachment and misappropriation of funds.
