Asset Recovery Watch

ARW-198
Xu Chaofan (also known as Hui Yat Fai), Xu Guojun (also known as Hui Kit Shun), Yu Zhendong
China
Bank of China, Guangdong Province Sub-Branch, Kaiping County, Executive Managers (successive): Xu Chaofan (1992-1998); Yu Zhendong (1998-2000); Xu Guojun (2000-2001)
Hong Kong SAR, China
Location of Recovery Effort, Asset Location / Alleged Asset Location
2001
2010
Art.17, Art.23
Yes
Private Civil Action
No
N/A
US Department of Justice press release following the Bank of China Managers' sentencing cited the "substantial assistance" by the government of the People's Republic of China, in particular the Ministries of Justice and Public Security along with the Hong Kong Department of Justice and Hong Kong Police Force, in producing evidence and making witnesses available, both for testimony at trial and videotaped depositions. (Source: U.S. Department of Justice Press Release, "Former Bank of China Managers and Their Wives Sentenced for Stealing More Than $485 Million, Laundering Money Through Las Vegas Casinos," May 6, 2009.)
Completed
Assets Returned to Victim or Requesting Jurisdiction
Unspecified amounts returned
No
N/A

Bank of China (China) Ltd. brought civil action against its former managers and their corporate vehicles and related bank accounts, and their co-conspirators. (Source: Hong Kong Appeals Court decision 2841/2006) The preliminary court decisions do not mention the amount being recovered, but noted that the scheme involved misappropriation of over 1 billion renminbi. One of the corporate entities used to funnel the embezzled funds, Yau Hip Trading, held accounts at Bank of China (HK) Limited of more than HK $120 million. (Source: Hong Kong Appeals Court decision, 5291/2001) Bank of China (Hong Kong) Ltd. was also involved in the recovery efforts. In Hong Kong, civil cases are not public, hence a copy of the final judgment is not publicly available.)

According to a U.S. Department of Justice press release, Mr. Xu Chaofan and Mr. Xu Guojun were convicted on August 29, 2008, by a federal jury in Las Vegas on charges of racketeering, money laundering, international transportation of stolen property as well as passport and visa fraud. Mr. Yu Zhendong, pleaded guilty to engaging in a racketeering enterprise on Feb. 18, 2004, and voluntarily returned to China, where he was convicted for embezzlement for his role in the bank theft. (Source: U.S. Department of Justice Press Release, Former Bank of China Managers and Their Wives Convicted for Stealing More Than $485 Million, Laundering Money Through Las Vegas Casinos," September 2, 2008, accessed at http://www.justice.gov/opa/pr/2008/September/08-crm-764.html.)

China Ministry of Justice; Public Security Bureau, Guangdong Province
Intermediate People's Court of Jiangmen City, Guangdong Province (secondary source)
Department of Justice; Hong Kong Police Force
Department of Justice
Court of Appeal (Civil); District Court (criminal - co-conspirators)