Date
22 October 2017
Standard Chartered is claiming about US$36 million in a lawsuit filed against the owner of Qingdao-based commodities trading firm Decheng Mining. Photo: Bloomberg
Standard Chartered is claiming about US$36 million in a lawsuit filed against the owner of Qingdao-based commodities trading firm Decheng Mining. Photo: Bloomberg

StanChart sues Decheng owner over loan fraud

Standard Chartered plc has sued the head of a commodities-trading firm that is said to be at the center of a suspected loans fraud in the eastern Chinese port city of Qingdao, the Wall Street Journal reported on Monday.

The lawsuit in Hong Kong targets Chen Jihong, the owner of Qingdao-based Decheng Mining, which is suspected to have illegally pledged the same stocks of commodities multiple times as collateral to get loans.

“We can confirm that we have started legal proceedings in Hong Kong against Chen Jihong of Decheng,” a Standard Chartered spokeswoman was quoted as saying.

Chen, who is Singaporean, is chairman of Decheng Mining’s parent, Dezheng Resources Holding and is also a director of Hong Kong-based Zhong Jun Resources Co. which has offices in Singapore.

StanChart has made a claim of about US$36 million in connection with a US$40 million dollar-denominated loan facility, according to the report.

Chen is said to have been detained by Chinese authorities.

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