The court ruled that the illegal gains exceeded 450 million yuan! The former president of this bank has committed six major crimes against the law | equity | court

The illegal and criminal behavior of a senior executive of a city commercial bank has quietly been exposed!

A judgment document recently disclosed by the Judgment Document Network shows that the former supervisor of Dandong Bank, Chang Gong, has been convicted of corruption, bribery, illegal loan issuance, high interest loan transfer, embezzlement of duties, and misappropriation of funds. He has been sentenced to 14 years in prison and fined 290 million yuan, with over 450 million yuan of illegal gains recovered in accordance with the law.

According to the disclosure, the court has frozen Gong's bank account and included it in the restricted high consumption list and the list of dishonest executed persons. There are still approximately 267 million yuan in outstanding case funds. After visiting, the court did not find any property available for execution by Gong. After questioning Gong's wife, she stated that she is no longer capable of fulfilling the obligations determined by the effective judgment on behalf of Gong.

Illegal gains exceeding 450 million yuan

According to public information, Gong, who is currently 50 years old, previously worked at Donggou County Foreign Economic and Trade Company and Dandong International Trust and Investment Company Donggang Branch. Later, he joined Dandong Commercial Bank and successively served as the department manager of Donggang Branch, vice president of Donggang Branch, and president of Fuchun Branch.

With the renaming of Dandong Commercial Bank, Gong successively served as the President of Dandong Bank Dalian Branch. The Assistant to the President and Vice President of Dandong Bank also served as the President of Dandong Branch. In May 2017, he was approved to serve as the President of Dandong Bank Headquarters and concurrently served as the Party Secretary of the bank.

In September 2019, Gong was appointed as the Chairman of the Supervisory Board of Dandong Bank, and soon after, he stepped down as the Secretary of the Party Committee of the Head Office. In the middle of the following year, Gong was appointed as the working group leader and chairman of Dandong Lingang Group. After resigning as a representative of the Provincial People's Congress in November 2021, Gong has no further public information.

A ruling from the People's Court of Kuandian Manchu Autonomous County, Liaoning Province, updated Gong's whereabouts: Gong was convicted of corruption, bribery, illegal loan issuance, high interest loan transfer, embezzlement, and misappropriation of funds. He was sentenced to 14 years in prison and fined 290 million yuan, and his illegal gains of over 450 million yuan were recovered in accordance with the law.

Afterwards, the Dandong Municipal Supervision Commission recovered and disposed of 95.75% of the equity of Dandong Xinliu Co., Ltd., which was actually controlled by former Gong. Gong's illegal gains should now be recovered in full, exceeding the amount of 22818800 yuan to pay Gong's payable fine. Other assets seized by the Dandong Municipal Supervision Commission are currently being disposed of by it.

However, after a court visit, it was not found that Gong had any enforceable property. After questioning Gong's wife, she stated that she is no longer capable of fulfilling the obligations determined by the criminal effective judgment on behalf of Gong. The court has recently frozen the bank account of Gong and included it in the list of high consumption restrictions and the list of dishonest executed persons. There are still approximately 267 million yuan in outstanding case funds.

The court believes that after exhausting all property investigation measures, Gong currently has no property available for execution, and therefore the execution procedure has been terminated. After the termination of this execution procedure, Gong has the obligation to continue to perform to the court.

Surprisingly revealing a case within a case

It is worth mentioning that as a senior executive of a commercial bank, why does Gong actually control 95.75% of the valuable equity of Xinliu Company? This has to mention another case.

In 2013, in order to cooperate with the listing of Xinda Asset, according to the unified deployment and arrangement of the group, Xinda Asset Liaoning Branch disposed of its 92% equity in Xinliu Company through public listing for sale. But there were no transactions in the two listed auctions.

When the equity was sold again in 2015, Hu, the then Deputy General Manager of Xinda Asset Liaoning Branch, was specifically responsible for this business. Liang approached Hu through connections and represented Yingkou Golden Kangaroo Commercial Co., Ltd. in multiple negotiations to purchase the equity.

During this process, Liang proposed to help lower the price of the equity and expedite the process, reducing the number of informed parties to ensure his successful purchase. He also stated that he would not help in vain after the matter was completed, and Hu agreed.

And Liang is just a broker in front of the platform, the real buyer is Gong. According to Gong's testimony, "I know that Xinliu Group is a high-quality enterprise with profits of tens of millions every year, and the company's prospects are promising. If it could be bought, it would be very good. I was doing a reverse loan business at the time, earning tens of millions, and I was the vice president of a bank. If too much money was found in my hands, I couldn't explain it clearly. In addition, I had received a lot of money from others over the years, and I was afraid of accidents, so I considered buying the equity of Xinliu Company."

In Gong's view, buying the equity of Xinliu Company can not only obtain a high-quality enterprise, but also use Xinliu Company to launder its illegal funds. Therefore, he contacted Liang to help operate and buy the equity of Xinliu Company. After the matter was completed, he was given a commission of 10 million yuan, which Liang considered and agreed to. "Liang told me that he needed 10 million yuan for some favors, and I also agreed."

After Liang used a huge sum of money to boost the relationship, Gong acquired the equity of Xinliu Group, which was originally planned to be priced at 350 million yuan, through Liang in December 2015 for 310 million yuan.

The judgment confirms that from December 2015 to April 2016, Hu used his position in charge of the Business Department to provide assistance to Gong in purchasing the equity of Xinliu Company held by Xinda Asset Liaoning Branch. He received a total of 1.5 million yuan from Gong through Liang four times.

Liaoning promotes the merger and reform of urban commercial banks

It is understood that Dandong Bank was established at the end of 1993, formerly known as Dandong City Credit Union. As of the end of September 2021, the total asset size of the bank after asset inventory is about 93.51 billion yuan, with a total share capital of about 1.68 billion shares.

Since 2021, multiple large equity transactions of Dandong Bank have successively appeared on judicial auction platforms, accounting for more than 11% of the bank's total share capital. In addition, Dalian Port Investment and Financing Holding Group has listed and transferred 100% equity of Shenyang Kaiming Industrial Co., Ltd., which holds 4.16% equity of Dandong Bank.

At present, Dandong Bank has not publicly disclosed its annual reports for 2021 and 2022. According to feedback from Dandong Bank, the reform and insurance transformation work of Liaoning Provincial Urban Commercial Bank has not been completed yet. Dandong Bank is promoting related work and continuing to suspend information disclosure.

In fact, Liaoning Province issued 13.5 billion yuan of special bonds for small and medium-sized banks in April 2022, which were indirectly injected into five urban commercial banks through Liaoning Financial Holding to supplement the capital of small and medium-sized banks, among which Dandong Bank was listed.

According to the original plan, Liaoning Financial Holding injected 2 billion yuan of capital into Dandong Bank, which is planned to be included in the bank's share capital, accounting for 51.37% of the shares. However, in February this year, Liaoning Province announced an adjustment to the capital replenishment method for the aforementioned special bonds. Among them, Dandong Bank will have the provincial finance department transfer the special bond funds to the local finance bureau and inject them into the bank through equity conversion agreement deposits.

Gong's downfall is a microcosm of the continuous promotion of financial anti-corruption in Liaoning Province. The former China Banking and Insurance Regulatory Commission disclosed a set of data in May 2022, stating that since 2021, 63 small and medium-sized bank leaders in Liaoning have taken detention and criminal coercive measures.

It is reported that the cover of corruption in the Liaoning City Commercial Bank system has been lifted, mainly due to the discovery of a large number of corruption issues within some banks during the merger and reform of city commercial banks in Liaoning in 2021. This not only hinders the reform, but also easily leads to regional financial risks.

Prior to this, in November 2020, the Liaoning Provincial Party Committee mentioned at the meeting of formulating the province's "14th Five Year Plan" that it would "deepen fiscal and financial reforms, promote the restructuring and integration of urban commercial banks", and officially proposed the relevant plan for the merger and reorganization of urban commercial banks in the province.

In June 2021, the provincial urban commercial bank "Liaoshen Bank" was established by the merger of the former Liaoyang Bank and Yingkou Coastal Bank. According to the arrangement, Liaoshen Bank will continue to merge multiple smaller urban commercial banks in the province in the future.