On March 27, 2026, the Weinan Intermediate People's Court in Shaanxi Province publicly announced its ruling in the case involving the confiscation of illegal proceeds from loan fraud by suspect Zhang Qingmin and money laundering by suspect Zhang Shumin. The court ruled to lawfully recover 17 properties purchased in Cyprus by Zhang Qingmin and Zhang Shumin, as well as the funds and accrued interest in seven bank accounts, which will be returned to the victim institutions.
After investigation, it was determined that from 2011 to 2016, suspect Zhang Qingmin, in collaboration with others, used self-made fake gold adulterated with tungsten to obtain gold pledge loans from four financial institutions in Shaanxi and Henan provinces, causing total losses exceeding 2.7 billion yuan to these institutions. During the same period, Zhang Qingmin directed others to transfer the fraudulently obtained bank funds to suspect Zhang Shumin and accounts under her control. To conceal and disguise the proceeds from Zhang Qingmin's loan fraud, Zhang Shumin dispersed over 1.4 billion yuan from these accounts into accounts held by money launderers. The funds were subsequently transferred to locations such as Hong Kong through money laundering methods, with a portion later moved to Cyprus, where they were used by the two individuals to purchase properties and make deposits. In May 2016, both suspects fled overseas.
The Weinan Intermediate People's Court concluded that evidence proves suspect Zhang Qingmin committed loan fraud and suspect Zhang Shumin committed money laundering. Both individuals have been wanted for over a year since their escape and have failed to appear in court. The 17 properties in Cyprus and the funds in the seven bank accounts applied for confiscation by the Weinan People's Procuratorate constitute illegal proceeds and other related assets from the crimes committed by Zhang Qingmin and Zhang Shumin. Apart from being lawfully returned to the victim institutions, these assets should be confiscated. The court therefore issued the aforementioned ruling.
The Weinan Intermediate People's Court accepted the case after review and lawfully issued a public notice. During the six-month notice period, the four financial institutions applied to participate in the proceedings, claiming restitution of the defrauded funds. On March 20, 2026, the court held a public hearing where the litigation rights of the suspects, interested parties, and other involved individuals were fully protected.
Nearly 30 individuals, including representatives from the People's Congress, members of the Political Consultative Conference, and members of the public, observed the court hearing.