Four persons including Zhan Peizhong and his son were involved in fraud. The prosecutor revealed that there is another case. Zhan: The two cases are not the same

Asian Resources Holdings’ major shareholder Zhan Peizhong, his son, and two men and women are suspected of conspiring to defraud the Stock Exchange, the listed company and other companies in a secret “buy shell” agreement when placing convertible stocks to increase the share capital of the listed company. The board of directors and shareholders, as well as the processing of crimes, benefited 42 million yuan.

The four persons divided into two cases were brought before the Sha Tin Court today (19th) and were charged with three counts of conspiracy to defraud and handling of property known or believed to represent the proceeds of an indictable crime.

The prosecution applied for adjournment of the case pending analysis of the relevant bank records, and revealed that there was another case. It is not ruled out that there will be new suspects and new charges. Zhan Peizhong yelled: The two cases are not the same, the acting director Magistrate Wen Shaoming adjourned the case until February 28th for trial.

The three defendants in the first case: Zhan Peizhong (75 years old, director), Zhan Jianlun (52 years old, businessman) and Wang Beili (65 years old, unemployed).

The second case only involved the defendant Ma Zhonghong (48 years old, businessman).

Charged with fraud to the Stock Exchange and money laundering

The Zhan and his sons and Ma were both charged with two counts of conspiracy to defraud, alleging that between July 1, 2013 and November 15, 2015, they conspired together and defrauded Asia Resources and its board of directors with others. And shareholders, and the Stock Exchange.

Ma Zhonghong and Wang Beili were also charged with the processing of property known or believed to represent the proceeds of an indictable crime, which alleged that they and Ma Zhonghong knew contingently during the period from October 24, 2013 to January 24, 2014. The reason is that a certain property, that is, a convertible note issued by Asia Resources with a principal amount of 42 million yuan, represents in whole or in part, directly or indirectly, the proceeds from an indictable crime and still handles the property.

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The prosecution revealed that this case is related to another case

As soon as the court opened, the prosecution alleged that this case was related to another case and it took time to discuss with the defense. The defense counsel also agreed. However, Zhan Peizhong suddenly shouted, "I am the first defendant. The cases are not all together!" The court later reopened. After hearing the clerk read out the charges, Zhan Peizhong said that he "didn't understand clearly" some of the charges, saying, "Your Honor, can't you hear clearly!" Wen The officer replied: "I heard well." And decided to let the defense try to explain clearly to Zhan Peizhong before handling the charges.

Zhan Peizhong finally said: "I understand, but it is not true." Wen Guan said that he can plead not guilty when he pleaded, and finally adjourned the two cases until February 28.

Zhan's father and son will each be guaranteed by 2 million in cash

Zhan's father and son were allowed to pledge 2 million in cash each, while Wang Beili was granted bail with self-signed 100,000 and 100,000 in cash.

Other common bail conditions include: surrendering all travel documents, not leaving Hong Kong, living at the reported address, reporting to the police station once a week, and not harassing the witnesses involved in the case.

Ma Zhonghong must be remanded in custody awaiting hearing.

Case No.: STCC 3381 and 3363 /2021

The ICAC sued Zhan Peizhong and his son and three others alleging that Asian Resources’ shell purchase transaction was involved in conspiracy to defraud. "The Number One Liang Fan" Prisoner Zhan Peizhong Exploited Borrowing Money

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