[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 1 February 2006, 08:03 GMT
China bankers in US scam charge
US dollar bills
The bankers are accused of setting up fake firms to launder the money
Two former Bank of China managers have been charged in the US with stealing $485m (272m) and attempting to launder the money through Las Vegas casinos.

Xu Chaofan, Xu Guojun and their wives were charged with 15 counts of racketeering, money laundering and fraud, the US Justice Department said.

The two men tried to launder the Bank of China's money through Hong Kong, Canada and the US, the department said.

The alleged scam, which ran from the early 1990s, was uncovered in 2004.

Fake firms

Authorities in the US said the fraud scheme also involved the brother-in-law of one of the bankers, Kuang Wa Po, who is currently described as a fugitive.

A sixth man, Yu Zhendong, was detained but later sent back to China to face racketeering charges after agreeing to cooperate with the investigation.

Assistant Attorney General Alice Fisher and Nevada US Attorney Daniel Bogden said that the two Bank of China managers set up shell corporations in Hong Kong and moved the bank's money into fake firms and personal accounts.

"The indictment charges the defendants with laundering a significant amount of the stolen money through Las Vegas casino accounts," they said.

The two men later attempted to emigrate to the US from China with their wives by obtaining false identities and entering into sham marriages with naturalized US citizens, the Justice Department said.

The two couples and their accomplices were detained by US authorities in 2004, the department said.

State-owned Bank of China is one of China's leading commercial banks.


SEE ALSO:
UBS to spend $500m on China deal
27 Sep 05 |  Business
UK bank buys into China start-up
06 Sep 05 |  Business
China's biggest bank sells stake
31 Aug 05 |  Business
RBS leads $3.1bn China investment
18 Aug 05 |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific