Two US Businessmen Tricked a Hengshui Bank into USD 10 Billion of Standby Letters of Credit — 20 and 14 Years Plus Expulsion · Yalla China

According to the Gazette of the Supreme People's Court: Francisco Hung Moy, chairman of a New York group, and Raymond C. Lee, its secretary and treasurer, both US nationals, came to Hengshui in late March 1993 and gave the Agricultural Bank branch heads false undertakings claiming they could bring in huge funds at no risk to the bank. When translating the documents Lee deliberately left out a clause stating the drafts represented debt for a loan to their company, and on 5 April 1993 the bank issued 200 irrevocable standby letters of credit totalling USD 10 billion, which Moy pledged for a loan abroad. With two Chinese accomplices they also forged seals of the Agricultural Bank's Hebei branch and guarantees for forged letters of credit. The letters were recovered before any payment. On 25 April 1994 the Hengshui Intermediate Court sentenced Moy to 20 years and Lee to 14 years, both with expulsion; the Hebei High Court upheld this on 13 May 1994. Basis: 1979 Criminal Law Art 152 (fraud), Art 167 (forging official documents and seals) and Art 30 (expulsion).