Banker held over loans swindle
A well-connected Anhui bank manager was detained this month in connection with a 200 million yuan (HK$228 million) fraud.
Starting last year, Li Qun, a sub-branch manager for the Agricultural Bank of China in Fuyang , allegedly borrowed from around 100 lenders at an interest rate of between 25 and 30 per cent, the Anhui Market News reported yesterday.
Lenders claimed they received a receipt bearing Li's signature and the bank's stamp. Li reportedly told them the money was being lent to companies unable to pay off bank debts.
A bank spokesman said the stamp was a fake. He said the fraud was 'personal conduct' on behalf of the manager and refused to confirm if the bank would repay the loans.
More than 60 lenders reported to the police after Li gave herself up on May 1 and there have been continued protests outside the sub-branch as they demand their money back.
Victim Xu Yang , who lent 7.6 million yuan to Li, said lenders assumed Li could repay the money because of her influential background.
'Her husband is the deputy director of Fuyang's publicity department and chief of the city's broadcasting bureau; her brother-in-law is chief of the tourism bureau; her brother is a procurator; and her father is a former county party boss. Everyone trusts her because of this background,' the victim was quoted as saying by China National Radio.