A former manager of China Construction Bank’s Shaoxing sub-branch in Zhejiang province has been arrested on suspicion of fraud, the Oriental Morning Post reported Thursday, citing local police.
According to an unnamed source, Chen Huijun promised high returns for deposits that were lent out to others but she failed to repay the money on time.
About 40 investors, most of them Chen’s friends and relatives, lost between one million yuan (US$162,000) and 38 million yuan in a scheme that involved 326 million yuan in loans, the report said.
More than 20 people protested in front of the branch Tuesday over the losses.
Chen was detained by the Shaoxing public security bureau on May 15, two days after the branch approved her resignation, according to the report.
One of the alleged victims said the money lent to Chen went a local businessman named Zeng Bingyuan, who was also detained by police.
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