| TUESDAY JANUARY 11 2000 PUBLISHED BY CHINA DAILY | |||||
| CITY NEWS | |||||
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Swedes who work hard, play hard Air quality improves Baby sun bear born on New Year 21st Century English contest Nike jerseys safe, TBT levels miniscule Man stabs girlfriend to death Socks appeal, or does size matter? Jaywalkers arrested for violence Man jailed for killing baby girl Experts evaluate China's WTO entry From race course to People's Square Teachers wanted |
Ex-couple in court over fraud HEARINGS began yesterday morning at Municipal No 1 Intermediate People's Court regarding Cai Linfen and Qiu Laifa who were suspected of being involved in a 62.96-million-yuan ($7.6 million) fraud. Cai and Qiu were also charged with diverting 9.28 million yuan ($1.12 million) of public funds to private use. At about 10:00 yesterday morning, 48-year-old Cai, all her hair turned to grey, staggered into the dock supported by two bailiffs. She was followed by 46-year-old Qiu, her ex-husband. According to court sources, in their capacity respectively as chairman of the board of directors and general manager of Shanghai Tianfu Real Estate Development Corp (Tianfu), from September 1995 to August 1998, Cai and Qiu had been involved in a series of frauds involving 72 houses and 62.96 million yuan ($7.6 million). In the frauds, the two suspects would sell and mortgage a given house to more than one entity in order to obtain cash or loans. The entities were mostly private buyers, banks and companies. The money obtained had been subsequently used in paying debts, serving loans and buying villas. From March to May 1996, Cai had bought two villas on Changle Road at 17.2 million yuan ($2.1 million). Then she spent 3.33 million yuan ($402,000) in decorating the villas. Cai was also charged with having diverted a total of 9.28 million yuan ($1.12 million) from Tianfu to Tiantian Restaurant, a very prosperous establishment under Cai's management from 1993 to 1995. In the court, both refused to admit they were guilty of the charges. "Our motive is not fraud. Our sale of houses had never led to two entities disputing over the ownership of a given house. It is a prevailing practice in operating real estate companies," said Cai. Qiu flatly refused he had anything to do with Tianfu, insisting the general manager title was non-existent. But he failed to provide a plausible explanation when he was questioned why he should submit his resignation as general manager towards the end of 1997. Cai and Qiu were divorced in December 1997. The hearings may last four days and it is expected to take some time before a verdict is reached. Copyright 1999 by Shanghai Star. All rights reserved. |
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