Creditors ask Beijing to speed up metal fraud probe
HONG KONG, Nov 21 (Reuters) Creditors frustrated at the slow pace of canada goose factory sale the investigation into an alleged metal financing scam at China Qingdao port have asked Beijing to step in to speed up progress Canada Goose Outlet as civil lawsuits pile up, sources with knowledge of the situation said.
The probe, at the world seventh largest port, centres around a private metals trading firm, Dezheng Resources Group, suspected of duplicating warehouse certificates in order to use a metal uk canada goose cargo multiple times to raise financing.
Police in Qingdao have been questioning Dezheng Resources Chairman Chen Jihong canadian goose jacket since uk canada goose outlet late July, but have not made any comment on when their investigation will conclude.
That is critical for the Canada Goose online creditors of Dezheng Resources jacket and its related companies, because civil lawsuits cannot proceed until the criminal investigation has been wrapped up. Total potential losses from the alleged fraud are estimated at more than $1.2 billion, based on disclosed figures.
Two sources said a small group of creditors had asked Beijing to assign the public security department, a powerful national body, to take over the investigation from local police in Qingdao.
In response, national investigators Canada Goose Online had been sent to join the Qingdao police special case team, the cheap Canada Goose sources said.
One source, who works at Dezheng Resources, said Canada Goose Jackets the investigation team was still trying to identify assets of Chen, Dezheng Resources and its companies, as well as any outstanding loans other companies owed to them.
At least one large state owned firm was looking to file a civil lawsuit against buy canada goose jacket cheap Chen companies on completion of the investigation, he said.
Qingdao canada goose coats on sale police declined repeated requests for comment.
CREDIT TIGHTENED The fallout from the Qingdao scandal has caused canada goose uk black friday local and foreign banks to tighten buy canada goose jacket credit for metals imports and triggered a flurry of lawsuits. canada goose The metal stocks used in the alleged fraud were mostly stored in Qingdao and Penglai ports in China northeastern province of canada goose uk outlet Shandong.
Dezheng creditors include Canada Goose Coats On Sale Standard Bank, Standard Chartered Bank, ICBC and Citic Resources.
Standard Bank canada goose clearance sale and Standard Chartered did not comment on the progress in emailed replies to questions Canada Goose sale from Reuters. ICBC has said its loss https://www.canadagooseoutlet4online.com was estimated at less than $200 million, while Citic Resources said in late October there had been two hearings but no determination by courts in China.
Some creditors canada goose store said the slow progress of the investigation was already interrupting their operations.
One of the sources, an executive at a firm that has filed a lawsuit against Dezheng, said the company was unlikely to recover its loss of more than 200 million yuan ($32.67 million), but wanted to canada goose coats end the case soon. But now it looks like the case will drag on two to three years, the executive said.
He added that his firm had been requested by the canada goose uk shop Qingdao police to provide information to help the investigation and to relocate the firm lawsuit to a Qingdao court from Shanghai.
A third source, a senior executive at a medium sized trading firm canada goose black friday sale that is involved directly and indirectly in claims against Dezheng, said banks had been holding up more than $20 million in its accounts pending the outcome of the lawsuit.
Dezheng Canada Goose Parka Chen was detained canada goose clearance by the Communist Party anti corruption cheap canada goose uk body over an unrelated case involving the ex boss of state owned Western Mining Group in late April. He was transferred to police custody in Qingdao in late July. (1 US dollar = 6.1220 Chinese yuan) (Reporting by Polly Yam; Editing by Alex Richardson).