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Ex-tycoon accused of fraud

Ex-tycoon accused of fraud

Write: Haines [2011-05-20]

A HONG KONG man once known as the richest man in Buji Subdistrict, Longgang District, is wanted for alleged fraud.

Wen Shouan, 60, was accused of forging a land contract and defrauding a company of 2 million yuan (US$307,600), the Daily Sunshine reported yesterday. The city procuratorate had approved his arrest but he had disappeared.

Wen was born to a poor family in Gangtou Village in Buji and became wealthy by selling pork. He then invested in many businesses in Hong Kong and was one of the earliest Hong Kong businessmen to invest in Shenzhen in the early days of opening up.

He became one of Shenzhen s first honorary citizens in 1994. He donated 300,000 yuan to the Shenzhen Education Foundation in 1993 and 700,000 yuan to a charity in Buji in 1994.

He built three residential buildings on 2,108 square meters in Longlinxincun in Buji, but paid for only 1,120 square meters between 1987 and 1990.

He was later alleged to have forged a land contract during a dispute with Shenzhen Yuanfeng Industrial Co., which had acquired 6,085 square meters from the Buji Subdistrict Government.

Wen claimed Yuanfeng s land included 1,500 square meters of his property. He submitted a land purchase contract which was later allegedly found to be forged to the Buji Subdistrict Government on Aug. 23, 2000 saying he had bought the 1,500 square meters of land for 15 yuan per square meter in 1983.

Wen received 2 million yuan from Yuanfeng as compensation for using his land.

Liao Zhiqiang, president of Yuanfeng, sued Wen in October 2008 after he found Wen s land purchase contract was suspicious. He is suing for the return of the 2 million yuan with 149,000 yuan in interest. Wen disappeared in April 2009.

(Tina Chen)