Ex-Bank of China managers, wives sentenced to prison

Two former managers of the Bank of China and their wives were sentenced to prison Wednesday for their roles in a fraudulent scheme to obtain at least $485 million from the financial institution.

The defendants were convicted of conspiracy and fraud charges last August after a Las Vegas trial that lasted nearly three months.

U.S. District Judge Philip Pro sentenced Xu Chaofan to 25 years in prison and Xu Guojun to 22 years. He sentenced their wives, Kuang Wan Fang and Yu Ying Yi, to eight years each, and the government has initiated denaturalization proceedings against both.

All four were ordered to pay $482 million in restitution.

Evidence presented at trial established the elaborate scheme to defraud the Bank of China. It was orchestrated by the two men and their colleague, Yu Zhendong, who pleaded guilty and cooperated with the investigation.

The indictment alleged the defendants participated in a racketeering conspiracy that began in 1991 and continued until October 2004.

According to the indictment, Xu Chaofan and Kuang Wan Fang were citizens of China when they married in 1992, and Xu Guojun and Yu Ying Yi were citizens of China when they married in 1985. At various times, the document said, the men held management positions at the Bank of China.

The scheme involved efforts by the bank managers to launder stolen money through Hong Kong, Canada and the United States, among other countries, then immigrate to the United States from China with their wives by obtaining false identities and entering into sham marriages with naturalized U.S. citizens.

Evidence presented at trial included a significant amount of transactions with the stolen money through Las Vegas casinos. Evidence showed that average bets at the casinos ranged from $20,000 to $80,000.

Contact reporter Carri Geer Thevenot at cgeer@reviewjournal.com or 702-380-8135.