China Uncovers $10 Billion Bank Fraud Case
BEIJING (AP) _ A leading Chinese bank said one of its branches issued phony letters of credit worth $10 billion in a fraud scheme involving a New York-based company, an official newspaper reported today.
The ringleaders of the scam were Zhao Jingrong, manager of a Hebei province branch of the Agricultural Bank of China, and Francisco Hung Moy, president of United Asia (Group) Corp., registered in New York, the China Daily reported, citing a bank spokesman.
The letters of credit they allegedly fabricated would have committed the bank to paying out the money.
On March 30, Moy issued a false letter of credit in the name of United National Republic Bank of Russia for $10 billion in favor of Zhao’s bank branch, the report said.
The next day, Zhao and an assistant, Liu Shuhong, illegally issued 200 more letters of credit worth a total of $10 billion, the report said. It did not say to whom the 200 letters were issued or whether any of the bearers drew on them.
The Agricultural Bank’s main office later discovered that the Russian bank does not exist and nullified all the letters.
The report did not say if the two domestic bank employees faced criminal charges or whether the United States would be investigating or charging Moy.
Nor did it say what sort of business Moy’s group is, or whether it was located in New York state or New York City. There was no listing for a United Asia (Group) Corp. in New York City.