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      Man seized in south China for real estate fraud

      2014-12-26 09:35 Xinhua Web Editor: Gu Liping
      1

      A man was arrested in south China's island province of Hainan over allegations he illegally borrowed more than 1 billion yuan (161 million US dollars) and duped potential real estate investors, announced local police on Thursday.

      According to the Hainan provincial public security department, since 2008 the man, identified as Yang, allegedly borrowed 1.02 billion yuan from 71 creditors and invested the money into two real estate projects.

      He has been accused of selling the apartments and retail outlets to 653 people from places across the country, including Shanxi and Chongqing.

      Yang, who does not possess a legal business license, failed to pay off the loans and allegedly fled, leaving buyers without any legal rights to the apartments and shops.

      He has confessed to his crimes, police said.

      The investigation continues, and police are still looking for two other suspects.

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