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)