Kunming former village official borrowed ¥300 million from residents and disappeared

A man surnamed Zheng, village chief of Huilong Village, Shangba Community, Panlong District, Kunming City, Yunnan Province, and legal representative of Kunming Shunna Trading Corporation, lost more than ¥300 million yuan borrowed from villagers.

According to reports, Shunna Trading Corporation solicited the deposits of local villagers with high interest rates, and promised: “We’ll pay out interest on time every month” and “You can have your principal back with three days advance notice.” From 2012 to 2014, Shunna Corporation was able to pay interest on the deposits every month. But from the second half of 2014, Mr. Zheng started paying interest late, and now the principal can’t be reclaimed.

According to creditors’ initial estimates, more than 380 families loaned Zheng money. Seventy percent are from the north city district. ¥120 million was borrowed from the Shangba Community alone. The Longquan residential district office spokesperson told the media that Zheng opened a storefront in the Jinchen neighborhood and borrowed ¥300 million from more than 400 households.

Recently, a creditor’s rights representative went to Shunna and discovered that the door had four locks on it and on the door was posted the note: “Work suspended due to reorganization.” After he went in he discovered that all the computers and accounts had been removed.
http://www.boxun.com/news/gb/china/2015/07/201507071923.shtml