Chinese Fugitives Forfeit Luxury London Homes Amid Fraud Probe

[para. 1] A Chinese businessman, Tian Wenjun, and his wife, Hao Jiangbo, have agreed to forfeit two luxury homes in Hampstead, London, along with other assets, as part of a £12 million ($15.3 million) settlement with the UK’s National Crime Agency (NCA). This agreement was reached after an investigation into their involvement in a massive loan fraud scandal amounting to 267.5 billion yuan ($36.8 billion) in China.

[para. 2] The properties in question, situated in the affluent borough of Hampstead, alongside two blocks of student accommodation in Coventry, and several bank accounts, were handed over by the couple to the NCA. The couple, who sought refuge in the UK several years ago, failed to provide the agency with a plausible explanation for the origin of funds used for these purchases or for the large amounts held in their bank accounts.

[para. 3][para. 4] According to the NCA, the properties were believed to have been acquired through “large-scale financial frauds” executed in China, with the proceeds laundered in abroad, including the UK and Jersey. Although Tian and Hao have consented to the settlement, they continue to deny any involvement in criminal activities, and the High Court in London has not convicted them of a crime.

[para. 5] Tian, once recognized as the wealthiest individual in Shanxi province and the founder of Longyue Industry Group, applied for entry into the UK under the now-discontinued Tier 1 Investor Visa scheme in 2017. Hao moved to the UK in 2018, with Tian and their children joining her as dependents in 2019.

[para. 6] The NCA's investigation was initiated following a request from the public security bureau (PSB) in Changzhi, Shanxi province, which was probing the couple’s alleged offenses and had issued arrest warrants for them in January 2021.

[para. 7] The Changzhi PSB accused Tian of leading a criminal organization of around 60 people, including his wife, which defrauded Chinese financial institutions of about 267.5 billion yuan. The group used 59 shell companies to secure over 1,000 loans, part of which were invested in manipulating the Chinese stock market.

[para. 8] The PSB estimated that the couple profited approximately 11 billion yuan from these fraudulent activities, and the NCA suggested that some of these illegally acquired funds were used to procure UK properties and stashed in bank accounts there.

[para. 9] The investigation also ensnared 168 individuals, including prominent banking officials such as Zhang Anshun, the former head of Shanxi province's banking regulator, and numerous other officials and cadres.

[para. 10] In May 2022, Hao deposited two sums totaling 135,500 pounds into her Barclays Bank account. The bank, questioning the source of these funds, froze her accounts, prompting a frozen funds investigation by the NCA in December 2022.

[para. 11][para. 12] The NCA pursued a civil recovery order against Tian and Hao in November 2022 under Part 5 of the Proceeds of Crime Act 2002, allowing asset seizure without requiring a criminal conviction. This was part of the NCA's broader efforts to trace and confiscate assets acquired through criminal activities, even when the underlying offenses occurred overseas.

[para. 13] This case demonstrated the NCA's collaborative efforts with international law enforcement, including partners in Jersey and Chinese authorities, to tackle global financial crime.