More on the 3 Billion Yuan Fake WMP
Following up on yesterday’s 3 Billion Yuan Fake WMP at Beijing Branch of Minsheng Bank
Global Times: China Minsheng Bank says it will assist in fraud probe
Material provided by the investors showed the products were “issued by China Minsheng Bank,” and carried the branch bank’s official deposit stamp. However, the bank previously told one investor that it was a personal act of Zhang.
The bank should shoulder legal accountability for these investors despite doubts about the authenticity of the stamp, as investors do not have the obligation to examine the stamp, Wang Fu, a lawyer with Beijing Zhenbang Law Firm, told the Global Times, adding that the case reflects negligence in management.
Wang said it is common for employees of Chinese banks to illegally cooperate with other private financial institutions, in order to sell WMPs to the bank’s customers.
Shanghai Daily: Minsheng exec in fake bank bills probe
Minsheng Banking Corp finds itself involved in a 3 billion yuan (US$436 million) fraud case as a branch chief of the lender in Beijing allegedly issued false bank acceptance bills and later secure funds from individual investors to cover up the misdeed.
…Zhang allegedly helped a corporate client disguise commercial acceptance bills as bank acceptance bills by using a false seal of the bank. The bills were issued by the client to a number of companies, which later discovered the bills were fake, Caixin said.
In order to cover up the fact that the fake bills were not able to be cashed by the bank, Zhang later sold 3 billion yuan of unauthorized wealth-management products to the bank’s private customers to get funds for the client to repay the bills.