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China Minsheng Bank has given further details of a police investigation into the president of a Beijing sub-branch who allegedly defrauded customers of approximately Rmb1.65bn ($239.4m).
In a statement posted to the Hong Kong stock exchange, the bank said Zhang Ying, president of the Hangtianqiao sub-branch is under investigation for allegedly defrauding more than 150 customers of their funds using forged wealth management contracts and bank seals. Ms Zhang was detained by police on April 14, the statement said.
The bank said:
Based on the clues currently available, Zhang Ying, herself found or instructed individual employees of the sub-branch to find target customers for the fake investment or wealth management products and the relevant transfer products fabricated by her, through controlling others’ accounts as a capital collection account, to raise funds from such customers in an illegal way for her own use, with a part of them for the investment in real estate, cultural relics, jewelry and other fields.
The bank said it was investigating the case and had frozen the accounts involved as well as seizing cash, property and goods belonging to the suspects.
The bank said other employees at the sub-branch are now under police investigation, without giving details of the number of staff involved.