Hebei cracked a huge foreign contract fraud case involving 1.26 million US dollars
The police of Handan City, Hebei Province, disclosed foreign-related contract fraud case using low-cost sales of steel materials as bait, involving a total amount of 1.26 million US dollars.
According to the police handling the case, steel companies affiliated to Pakistan, the United States, India, Ukraine, Malta and other countries and a steel company in Taiwan successively sent personnel to the Economic Investigation Detachment of Handan Public Security Bureau to report that they were cheated by Zhang of Handan Guanying Trade Co., Ltd. with low-cost sales as bait.
Wang Baoshi, deputy director of the Public Security Bureau of Handan City, said that after investigation, the suspect Zhang established Handan Guanying Trading Co., Ltd. on October 18, 2011 under the guise of others, and used the Internet to release low-price sales information. As a result, steel companies in six countries and regions were cheated of nearly 500000 US dollars in advance payment of steel and 760000 US dollars in sight letters of credit, totaling more than 7 million yuan, Zhang fled with money on April 18, 2012.
The Handan police set up this case as a contract fraud investigation. After careful work, the police found and frozen the spot L / C of 130000 US dollars and controlled 760000 US dollars in Handan branch of Bank of China on April 26, 2012. On May 17, Zhang was arrested in Shandong Province and 2.15 million yuan was seized on the spot. The suspect Zhang confessed to the crime.