Chinese copper tycoon sentenced to life in prison in fraud case
He Jinbi, the founder of the major Chinese copper trading company Maike Metals International, was found guilty of crimes including fraud and bribery, and sentenced to life imprisonment.
Chinese copper tycoon sentenced to life imprisonment in fraud case
He Jinbi, the founder of China's Maike Metals International trading house, has been sentenced to life imprisonment in a case involving fraud and other crimes.
According to the agency's interlocutors, a court in Xi'an found the head of Maike guilty of contractual fraud, bribery, and other crimes in September and passed the sentence. Bloomberg sources noted that the court determined the company's actions posed a risk of causing more than $1 billion in losses to several Chinese banks.
The 61-year-old businessman has appealed the verdict. The court decision itself has not been published.
During the trial, the defense strongly insisted that neither the businessman nor his company had any intention to commit fraud. According to Bloomberg, lawyers pointed out that Maike had cooperated with banks for over a decade and, even after cash flows deteriorated due to pandemic restrictions, regularly repaid loans in an effort to fulfill its obligations. According to the defense's position, at least part of the bank losses was linked to shortcomings in the creditors' own internal risk management systems.
In 1993, He Jinbi founded Maike in Xi'an along with friends by taking out a loan of 50,000 yuan — approximately $8.7 thousand at the exchange rate of that time. The company began operations trading mechanical and electrical products before later moving into the trade of scrap metal, copper wire, and refined copper. Bloomberg noted that at the peak of its development, the company accounted for a quarter of China's copper imports.
Maike raised loans by pledging metal it transported and stored in warehouses, and also invested in hotels and business centers. In 2022, pandemic restrictions disrupted the company's operations, while the crisis in the Chinese real estate market dealt a blow to its investments. In addition, the sharp drop in copper prices further compounded its financial difficulties.
In October 2023, Maike executives lost contact with the founder, assuming he had been detained by the police. The following month, the company filed for bankruptcy.