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Public security authorities in Central China’s Henan province have arrested 234 criminal suspects involved in a closely watched rural bank scandal, and achieved a “major progress” in the recovery of money and other losses, the local public security bureau in Henan’s Xuchang said on Monday.
In addition, starting at 9 am on Tuesday, individuals with deposits ranging from 400,000 yuan to 500,000 yuan in the four rural banks in Henan and one in East China’s Anhui province will be repaid, according to a joint announcement released by the Henan branch of the China Banking and Insurance Regulatory Commission (CBIRC) and the provincial financial bureau on Monday.
Those with savings above 500,000 yuan will be paid a maximum of 500,000 yuan and they will retain the rights to any amount over 500,000 yuan, and this will be addressed accordingly, based on the recovery of assets involved in the case.
According to the police, the investigation into the case has found that a criminal gang led by suspect Lv Yi, the actual controller of Henan New Wealth Group, illegally controlled four rural banks, including Yuzhou New Minsheng, and was involved in a series of serious crimes. “The criminal gang tempted depositors with an annual return rate of 13-18% and paid by using illegally acquired capital. Some clients with large savings were paid an ‘interest subsidy,’ which was exploited by financial brokers at various levels.”