Swindler Gu Qing was sentenced to 15 years in prison on Monday for the biggest fraud of its kind that Beijing has ever seen.
The No. 2 Intermediate People's Court handed down the sentence after hearing how Gu had rented 48 cars including Audis, Passats and Jettas from four Beijing-based firms between April 2000 and March 2003.
He gave the cars, in total worth 6.5 million yuan (US$780,000), to 40 individuals from whom he then borrowed 4.4 million yuan (US$525,000). They were loaned the cars rent-free as a sort of guarantee that he would return their money.
Gu was arrested in 2003 after the Beijing Zhongjin Auto Service Company reported him for failing to pay over 10,000 yuan (US$1,200) hire fees on time.
"The court will continue to look for the 12 cars that have not yet been recovered," Judge Zhai Lijia said yesterday. "The money Gu raised will also be recovered by the court and given back.”
Gu spent more than 2 million yuan (US$240,000) on operating an advertising company and betting on football matches. He paid the rest to car-hire companies in rental fees.
He was also fined 150,000 yuan (US$18,000).
"In signing deals with car owners and people who lent money to him, Gu swindled cars and money from them by fabricating fact and providing a fake guarantee," Zhai said. "Gu knew he would not be able to fulfill the contracts. His behavior has violated the contract management law and citizens' ownership of property, resulting in contractual fraud."
Contractual fraud can carry a sentence of life imprisonment. Gu admitted all of the charges and has said he will not appeal, as "the judgment is fair."
(China Daily November 16, 2004)
