Chinese couple accused of huge fraud in China surrender £12m of property and cash after NCA probe

NCA HQ in Vauxhall, south London

A Chinese couple basd in the UK have agreed to surrender £12 million worth of property and money that the National Crime Agency (NCA) suspects to be the proceeds of crime.

In response to separate NCA civil recovery and frozen funds investigations, Mr Wenjun Tian and Ms Jiangbo Hao, both Chinese nationals, have agreed to forfeit two luxury residential properties in London’s Hampstead suburb, two blocks of student accommodation in Coventry and monies held in several bank accounts.

The NCA suspects these assets were acquired as a direct result of large-scale financial frauds committed in China and the laundering of the proceeds of this criminality in overseas jurisdictions, including the UK and Jersey.

In September Bloomberg reported that the fraud in question was worth 262.5 billion yuan (£29.5 billion) and that the couple were suspected in China of netting around £1.2 billion from the 14-year conspiracy that allegedly used a string of shell companies to apply for fraudulent loans as well as stock market manipulation.

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

Lawyers for the couple said the NCA gave a “one-sided, partisan and misleading account of the evidence,” during the hearing.

They also claimed the NCA investigation was based on information from Chinese authorities who acted out of "political motivation" as part of its “transnational repression” of citizens.

However, the High Court did not find evidence of the couple having a political profile as government officials or as political dissidents in China. 

Following the case, the NCA said Mr Tian and Ms Hao failed to provide the NCA with any reasonable explanation for the source of funds used to purchase their properties or for the substantial sums of money held in their bank accounts.

Mr Tian and Ms Hao have denied engaging in any criminal activity whatsoever and the High Court has made no finding in that regard.

The Consent Order does not represent a criminal finding of guilt.

Rob Burgess, Head of Asset Denial at the NCA, said: “The NCA uses both civil and criminal powers to investigate the provenance of assets in the UK where they are believed to have been acquired with the proceeds of crime, including when the suspected criminality was committed overseas. This case involved co-operation with law enforcement colleagues in Jersey and the authorities in China.”

Jonathan Groom, Director of FIU Jersey commented: "Collaboration and partnership, in particular with our close colleagues in the NCA, remains of prime importance to Jersey. This settlement involved the co-operation and assistance of the Financial Intelligence Unit Jersey in identifying associated offshore assets that form part of the agreement.”

Bloomberg reported that Mr 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 Ltd. 

Dolfin, which invested over £10 million on their behalf in 2017, is now under special administration.

The Financial Conduct Authority is investigating Dolfin for an alleged scheme to help clients unlawfully obtain investor visas. Tian moved to the UK in 2019, a year after his wife