Four found guilty in bank scam
Two former managers of the Bank of China and their wives were convicted Friday of several conspiracy charges for their roles in a fraudulent scheme to obtain at least $485 million from the financial institution.
The verdicts concluded a trial that began nearly three months ago in Las Vegas. The case was prosecuted by lawyers from the Justice Department's criminal division in Washington, D.C.
A federal jury found Xu Chaofan, Xu Guojun, Kuang Wan Fang and Yu Ying Yi guilty of racketeering conspiracy, money laundering conspiracy and conspiracy to transport stolen money. Xu Chaofan and Xu Guojun also were convicted of visa fraud, and their wives were convicted of passport fraud.
U.S. District Judge Philip Pro is scheduled to sentence the defendants Nov. 24.
The indictment also charged Kwong Wa Po, who remains a fugitive. The indictment accused all five defendants of participating in a racketeering conspiracy that began in 1991 and continued until October 2004, when the two former bank managers and their wives were arrested.
Kwong Wa Po is described in the indictment as the brother of Kuang Wan Fang.
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, according to the document, Xu Chaofan and Xu Guojun held management positions at the Bank of China.
Authorities said the elaborate scheme was orchestrated by Xu Chaofan, Xu Guojun and Yu Zhendong. Yu Zhendong, also a former bank manager, pleaded guilty in connection with the investigation and cooperated with the United States.
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 U.S. 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.
