Foreign crimes up in Shanghai FTZ

A rising proportion of cases involving economic crimes within the Shanghai Free Trade Zone last year were related to foreign activity — more than in previous years — while the total number of cases remained stable, a senior prosecuting officer said.

Fourteen cases out of the total of 174 last year involved either foreigners or foreign-related means of crime, said Zhu Yimin, deputy chief prosecutor at the municipality’s prosecuting agency in Pudong New District, during a media briefing on Wednesday.

"Of those cases, two involved foreign individuals or businesses as victims, six were about illegal overseas margin trading and the others were related to registering companies overseas to commit fraud," he said.

In one case, for example, six members of the managerial staff at a foreign trade company registered in the Free Trade Zone, led by an individual surnamed Kang, claimed association with five Chinese companies in the chemical industry and forged materials to successfully open offshore accounts in some foreign countries and regions. They then searched the internet for foreign businesses needing the products and cheated a handful of companies out of about 220,000 yuan ($33,600) by requiring cash before delivery.

The case is being reviewed by the prosecuting agency. Kang is suspected of contract fraud.