Authorities are currently on the hunt for Chinese tycoon Liao Rongna of the Zhengling Group, who fled the country after scamming investors out of billions of yuan, Xinhua reports. Interpol has issued a Red Notice for Liao’s arrest.
Liao, 58, had reportedly obtained billions of yuan worth of loans by promising investors high returns, but then never kept his promise. He’s been accused of obtaining loans on false pretenses as well as misappropriating funds. Reuters reports:
Zhengling Group raised more than 7 billion yuan in illegal bank loans and another 3 billion yuan in individual loans, according to local media reports published in April and May, which would make it the largest case of illegal fundraising in the region.
Xinhua said police found more than 1,500 loan contracts, involving about 3.2 billion yuan, as part of its investigation. As many as 600 creditors have registered with local public security agencies, and more creditors are expected to emerge, the news agency said.
Zhengling Group said its total assets reached 26.54 billion yuan as of July 31, 2013, while group debts amounted to 8.52 billion yuan.
If found guilty, Liao could face death.
Liao’s wife Ye Zhiqun, former vice chairman of the Zhengling board, is also on the lam while his youngest son, a former chairman of Zhengling, was apprehended by authorities in June.
Liao’s case harks back to that of Chinese billionaire Wu Ying, who cheated investors out of 360 million RMB between 2005-2007 and barely escaped death.
[Image via Interpol]