Guan Cha Zhe Wang·2026-01-30 07:32Core Viewpoint - Zhongshan Securities, a subsidiary of Jindong Co., is embroiled in a legal dispute involving approximately 490 million yuan, stemming from a financial fraud case that began 12 years ago [1][8]. Group 1: Lawsuit Details - The lawsuit was initiated by China Everbright Bank's Changchun branch against five defendants, including Zhongshan Securities, for tort liability [2][8]. - The case traces back to 2013 when Liu Xiaoyi, the legal representative of Liuhe Juxinyuan Rice Industry Co., misrepresented the company's financial status to secure a loan of 350 million yuan [3][4]. Group 2: Fraud Mechanism - Liu Xiaoyi collaborated with Zhang Lei, an assistant manager at Everbright Bank, to fabricate financial documents and mislead the bank into approving the loan [3][4]. - The fraudulent scheme involved a complex flow of funds, where Everbright Bank deposited 350 million yuan into China Merchants Bank, which was then transferred through Zhongshan Securities to Ping An Bank, ultimately reaching Liu's company [4][6]. Group 3: Legal Proceedings - After the fraud was uncovered in 2014, criminal charges were filed against Liu and Zhang, resulting in severe penalties, but only a small portion of the embezzled funds was recovered [6][7]. - In 2015, Everbright Bank filed a civil lawsuit against China Merchants Bank to recover the funds, but the Supreme Court ruled that the original agreement was invalid due to its fraudulent nature [7][8]. Group 4: Current Developments - In 2026, Everbright Bank reinitiated legal action, this time claiming tort liability and seeking a total of 489 million yuan, including principal and interest [8]. - The outcome of this case remains uncertain, with questions surrounding the liability of the involved banks and the potential for Everbright Bank to recover its losses from a decade-old fraud [9].