Trial scheduled to begin in Bank of China theft case

Two former bank managers and their wives are scheduled to go to trial today on charges they falsified immigration documents and stole more than $400 million from the Bank of China, the second-largest financial institution in the mainland nation.

Xu Chaofan and Xu Guojun were bank managers at branches throughout China. Beginning in the early 1990s, the men, and eventually their wives, began using their positions to defraud the bank of at least $485 million by using wire transfers, telegrams, checks and cash, according to the U.S. attorney's office.

The pair also wrote checks up to $1 million in exchange for cash at Las Vegas casinos, prosecutors allege.

Chaofan was initially indicted in 2002 on charges of fraudulently obtaining a visa. Further investigation by the federal government uncovered the employees' scheme to defraud the Bank of China using numerous legal entities established in China and Hong Kong, according to the indictment.

The two men married Chinese residents with U.S. citizenship to gain approval to come to the United States, the indictment alleges.

They created an enterprise by "enabling the members and associates of the Enterprise, through marriage, passport, and visa fraud, to travel ... between China, Hong Kong and the United States, and to flee Hong Kong in the event that the criminal activity of the Enterprise was discovered," the indictment alleges.

The four engaged in racketeering in Nevada between 1991 and 2004, the indictment alleges.

Xu Guojun's wife, Yu Ying Yi made a cash deposit of about $80,000 in 2000 at Paris Las Vegas; Xu Guojun purchased $12,000 worth of chips at Treasure Island that same year, according to the indictment.

Four checks totaling $2 million in a false name were deposited at the Rio in 2001, according to the indictment.

That same year, Caesars Palace cashed a personal check in the amount of $1 million to Xu Chaofan, who used another name, the indictment alleges.

Xu Chaofan's wife, Kuang Wan Fang, also has been indicted on conspiracy charges.

When the couples were arrested, the federal government found them in possession of $162,000 in addition to money from 13 different countries.

The government found 16 brand-named watches valued at up to tens of thousands of dollars each. They included Rolexes, Piagets, Guccis, Bvlgaris and Cartiers.

Twelve silver rings with stones and 20 gold rings were discovered with 12 bracelets and 20 necklaces. The government also seized a Lexus, computer equipment and property in British Columbia.

The Department of Justice is handling the case for the government.

Contact reporter Adrienne Packer at apacker@reviewjournal.com or 702-384-8710.