UK probe looms for couple accused of 262b yuan fraud

A couple accused in China of leading a 262.5 billion yuan (HK$294 billion) fraud are facing a UK probe into how they built up a multimillion pound property portfolio, according to a court ruling.

The UK's National Crime Agency is scrutinizing whether the collection of student rental properties acquired by Tian Wenjun and his wife were bought using money from criminal activities.

They're suspected in China of bagging 1.2 billion (HK$12.48 billion) stemming from a 14-year fraud that used a string of shell companies to apply for fraudulent loans as well as stock-market manipulation.

A London court on Friday rejected their appeal against an order to disclose details about their assets. They will be allowed to keep their real estate assets worth over 14 million if they are legitimately purchased.

In total, Chinese authorities said some 1,010 loans were taken out by 59 shell companies under the control of Tian.

The agency gave a "one-sided, partisan and misleading account of the evidence," the couple's lawyers said in the hearing.

Its probe, they argued, was based on information from Chinese authorities who acted out of political motivation as part of its "transnational repression" of citizens. The court did not find evidence of the two having a political profile as government officials or as political dissidents in China.

Tian and his wife moved to the UK using the now-scrapped investor visa program, helped by a controversial wealth management firm Dolfin Financial UK.

Dolfin, which invested over 10 million on their behalf in 2017, is under special administration. The money came from selling Tian's shares in Dongsheng International Investment Group. Tian moved to the UK in 2019, a year after his wife

The Chinese authorities issued arrest warrants against them in 2021 while the UK investigation began in 2022.

BLOOMBERG