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China Arrests Hundreds in Nation's Biggest-Ever Bank Fraud Probe
Bloomberg News
Mon, August 29, 2022 at 8:57 PM
(Bloomberg) -- China arrested hundreds of people allegedly involved in the nation’s largest ever bank fraud and started repaying more victims of the $5.8 billion scandal, in a bid to maintain social stability ahead of this year’s twice-a-decade Communist Party congress.
Police in Xuchang city of Henan province arrested 234 suspects tied to the scam and made “significant progress” in recovering the stolen money, according to a statement late Monday. Police have said that a criminal gang led by suspect Lv Yi illegally controlled four rural lenders including Yuzhou Xinminsheng Village Bank, offering rates as high as 18% to attract funds that officials say amounted to 40 billion yuan ($5.8 billion).
Local authorities said they are repaying more victims, on top of the 18 billion yuan doled out as of mid-August. Investors with deposits of 400,000 yuan to 500,000 yuan will be repaid starting early Tuesday, the authorities said. Those who have lost more will be getting an initial sum of 500,000 yuan with the remainder reserved for now...
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