China: Around The Nation

Chinese tycoon Chen Guangbiao’s recycling firm involved in US$45 million of fraud cases

Multimillionaire reports matter to police after finding fake official seals in staff member’s possession

PUBLISHED : Tuesday, 09 August, 2016, 10:40am
UPDATED : Tuesday, 09 August, 2016, 10:40am

A Chinese recycling firm owned by controversial multimillionaire Chen Guangbiao has been found using more than 170 fake company seals to commit business fraud involving over 300 million yuan (HK$349 million).

Chen – who founded the firm, Jiangsu Huangpu Recycling Resources, in Nanjing, eastern Jiangsu province – said he called the police after finding many fake official seals in a deputy general manager’s drawer in March, Beijing Times reported.

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Investigations showed that the general manager had instructed the deputy to use the seals to sign deals with other firms in the company’s name.

The money the pair made allegedly went into their own pockets and they provided false profit numbers in the corporate balance sheet, according to the report.

Chen said his company suffered more than 300 million yuan of losses in the fraud. If recovered, the money would be given to charity, he told the newspaper.

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Nanjing authorities investigating the case have declined to reveal details of their progress, but Chen said the deputy general manager was detained in March and later released on bail.

The general manager, when contacted by phone, declined comment.

Registration records show that Jiangsu Huangpu Recycling Resources was registered in 2003 with Chen as its legal representative. The role was transferred to two other people before reverting to Chen in March 2013.