Top 10 Economic Crimes of 2013

eca86bd9e2eb146bdf4e08Xinhua published a report titled ‘Public Security Department Releases List of Top Ten Economic Crimes of 2013‘ (公安部公布2013年全国十大经济案件), rendered in the China Daily‘s translation as ‘Top 10 white-collar crimes in 2013‘. The China Daily version is reproduced below:

More than 1,498,000 money-related crimes were investigated by police in 2013. According to the Ministry of Public Security (MPS), the action by authorities prevented loss of more than 49.26 billion yuan ($8.11 billion). Here’s a look at top 10 financial crimes committed last year, based on data released by MPS.

1. GlaxoSmithKline scandal
Following a tip-off in 2013, police discovered GSK (China) Investment Co Ltd reportedly offering bribes. To open more distribution channels and raise product prices, GSK allegedly bribed government officials, medical associations, hospitals and individual doctors.

The case is ongoing.

2. Bond trading fraud
Ministry of Public Security uncovered a series of bond frauds committed by traders. Many suspects were arrested, including manager of CITIC Securities’ Fixed Income Department, manager of cash operation in Liaoning Rural Credit Union, and a bond trader of BOC International (China) Ltd.

3. Operation Cloud Edge
MPS began “Operation Cloud Edge” in July 2013 to crackdown on online counterfeit drugs sales. With the help of police departments in 29 provinces, the operation forced the closure of more than 140 illegal websites and led to arrests of 1,300. During the raid, 300 million pills and nine tons of raw material, valued at more than 2.2 billion yuan, were confiscated.

4. Guangdong “7.18” counterfeit tax invoice case
Following a tip-off provided by the tax bureau, police investigated the “7.18” counterfeit tax-invoice fraud case in Guangdong, Shenzhen, in March 2013.

Authorities took down four tax fraud organizations, raided 26 locations, confiscated more than five tons of counterfeit tax-invoices and prevented economic losses of more than 100 million yuan, on June 19, 2013.

5. Cross-Straits pyramid scheme case
Guangxi police and Taiwan law enforcement agencies investigated a pyramid scheme and arrested 126 suspects in August 2013.

Several Taiwanese businessmen had lured thousands of investors under false pretenses, such as real estate development and retailing opportunities, to Guangxi province to participate in the pyramid scheme.

6. Reminbi counterfeit ring
Authorities in Guangdong carried out a synchronized operation against a fake currency ring on January 22, 2013. Several suspects were arrested, two counterfeits Renminbi rings were destroyed, secret locations uncovered and 210 million yuan worth of finished and semi-finished fake currency was seized. It was the first successful raid against fake currency plate manufacturers in 10 years.

7. Counterfeit bank card case
After a four-month investigation, authorities in Guangdong destroyed a counterfeit bank card ring and arrested several suspects, on Dec 24, 2013.

8. Apprehended fugitive Chen Yi
Chen Yi, head of Shanghai Fanxin Insurance Co Ltd who was suspected of embezzling 500 million yuan from the company, fled to Fiji in August 2013. Thanks to the cooperation of Fiji law enforcement agencies, Chen Yi was arrested in the country.

9. High-profile illegal foreign exchange case
Authories in Shanghai were successful in closing down a high-profile illegal foreign exchange case in July 2013. A suspect was running several shell companies since July 2012 and had falsified trading background to siphon off 1.8 billion yuan from a bank. It was the biggest amount in recent years.

10. China Merchants Fund “Front running” case
Assistant manager of China Merchants Fund was investigated for “front-running”. He used a relative’s account to make 1.59 million yuan in illegal profits. To cover up his crime, he bought 365 million yuan worth of same shares and made illegal profits of 31.86 million yuan.

Links and sources
Xinhua: 公安部公布2013年全国十大经济案件
China Daily: Top 10 white-collar crimes in 2013