Illegal Forex Case Unravels a Phony Foreign Capital Industry Chain (AI Translation)
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文｜财新周刊 黄雨馨
By Caixin Weekly's Huang Yuxin
大额美元资金频繁快进快出，让女商人周梅霞进入了警方视线。2022年12月17日，56岁的周梅霞在上海被从江苏盐城东海县赶来的警察带上警车。2024年8月12日，东海县法院认定她非法买卖外汇金额高达近80亿元人民币，情节特别严重，构成非法经营罪，一审判处有期徒刑六年半。周梅霞不服上诉，2024年12月26日，连云港市中级法院二审裁定驳回上诉，维持原判。
Large sums of U.S. dollars frequently flowed in and out, drawing the attention of the police to businesswoman Zhou Meixia. On December 17, 2022, the 56-year-old Zhou was taken by officers from Jiangsu's Yancheng City to a police car in Shanghai. On August 12, 2024, the Donghai County Court found her guilty of illegal forex trading amounting to nearly 8 billion yuan, citing exceptionally serious circumstances, and sentenced her to six and a half years in prison in the first trial. Zhou appealed against the decision, but on December 26, 2024, the Lianyungang Intermediate People's Court dismissed her appeal, upholding the original verdict.
周梅霞卷入的是一系列引进外资造假案。判决书记录了整个操作过程：首先，周梅霞直接或经人联系有招商引资任务的地方政府或者企业，商定由周梅霞联系境外美元完成任务，按照每 100万美元收取人民币17万元至46万元不等的标准作为费用。谈好条件后，周梅霞以境内支付人民币、境外收取美元等方式购买美元，汇入其购买或注册的境外公司账户，再以外商投资名义转入境外公司在境内各地以投资名义成立的外资公司资本金账户，获取 FDI（外国直接投资）认证后，即以假借大宗商品贸易的方式快速结汇，再相继转入她控制的公司或个人账户，需求方将约定的费用汇入她另外指定的银行账户，或由需求方自行结汇直接向其支付等额人民币及费用。周梅霞回笼资金后继续购买美元，从而形成国内外资金的循环融通。
Zhou Meixia became embroiled in a series of fraudulent foreign investment introduction schemes. According to the court ruling, the entire operation was meticulously outlined: Initially, Zhou Meixia either directly or through intermediaries contacted local governments or enterprises tasked with attracting foreign investment. She negotiated deals to bring in overseas U.S. dollars, charging a fee ranging from 170,000 to 460,000 RMB for every $1 million. Once conditions were agreed upon, Zhou would purchase U.S. dollars through domestic RMB payments to be received abroad in dollars, which would be wired to accounts of overseas companies she bought or registered. These funds were then transferred back to capital accounts of foreign-invested companies set up in various domestic locations in the guise of foreign direct investment (FDI). Upon obtaining FDI certification, funds were swiftly converted under the pretense of substantial commodity trading, then sequentially transferred to companies or personal accounts under Zhou's control. The client would wire agreed fees to another designated account of hers, or settle directly by converting currency and paying her in RMB and fees of equivalent value. Once funds were cycled back, Zhou would purchase more U.S. dollars, perpetuating a cycle of domestic and international fund circulation.
法院查明周梅霞有20起犯罪事实。两年多时间里，周梅霞的客户遍及山东的济南、青岛、烟台、德州、日照、菏泽、济宁、聊城、泰安、淄博、临沂，江苏的扬州、淮安、徐州、盐城、连云港、镇江等地。经审计，涉案境内外资公司共计入账11.598亿美元，折合人民币78.9亿元，周梅霞收取费用共计人民币2.5亿元。由于成本费用难以查明，按照相关司法解释规定，法院以经营数额的千分之一计算违法所得，即人民币 789万元。
The court identified 20 criminal acts attributed to Zhou Meixia. Over a span of slightly more than two years, Zhou's clientele spread across cities in Shandong province, such as Jinan, Qingdao, Yantai, Dezhou, Rizhao, Heze, Jining, Liaocheng, Tai'an, Zibo, Linyi, and cities in Jiangsu province, including Yangzhou, Huai'an, Xuzhou, Yancheng, Lianyungang, and Zhenjiang. According to audits, the involved domestic and foreign-funded firms totalled $1.1598 billion in recorded transactions, equating to 7.89 billion yuan. Zhou Meixia collected a total of 250 million yuan in fees. As the costs and expenses were difficult to ascertain, the court, following relevant judicial interpretation guidelines, calculated the illegal gains at one-thousandth of the operating amount, which amounts to 7.89 million yuan.
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- Zhou Meixia, a businesswoman, was convicted in 2024 for illegal Forex trading totaling 7.89 billion yuan and sentenced to over six years in prison. Her appeal was dismissed.
- She coordinated foreign investments through fraudulent schemes, cycling funds between domestic and international accounts, earning fees by converting currency.
- Despite uncovering fraudulent practices involving government collaboration, no officials have faced charges; Zhou argued for innocence, claiming legitimate investments.
Zhou Meixia, a businesswoman, was apprehended by authorities in Jiangsu's Yancheng City on December 17, 2022, due to unusual large sums of U.S. dollar transactions. She was found guilty in August 2024 of illegal forex trading involving nearly 8 billion yuan, which led to a six-and-a-half-year prison sentence [para. 1]. Zhou's appeal was dismissed, reinforcing the original verdict by December 2024 [para. 1].
Zhou's fraudulent schemes involved foreign investment introductions, where she negotiated deals with local governments and businesses to bring in overseas dollars, charging fees from 170,000 to 460,000 RMB per million U.S. dollars [para. 2]. The funds were acquired through intermediaries, converted via false Foreign Direct Investment (FDI) processes, and ultimately diverted to Zhou's accounts [para. 3]. Despite 20 criminal activities across various cities, no governmental figures were charged, exposing loopholes in the investment attraction practices [para. 3][para. 4].
Born in March 1966 in Jiangsu Province, Zhou transitioned from law to real estate and later moved to Shanghai to manage a health supplement business, which dwindled during the COVID-19 pandemic, prompting a shift to investment attractions [para. 5]. For substantial foreign deals, she coordinated with Sheyang County's government, establishing companies to facilitate U.S. dollar purchases for structuring foreign investments [para. 5][para. 6].
Utilizing intermediaries for swift and low-fee transactions, Zhou bought and converted over $14 million, channeling funds to companies under different pretexts [para. 7]. However, complications in invoicing led to the formation of new entities for dollar conversions, implying her tactical adaptability in maintaining operations despite hurdles [para. 7].
Her notable partnerships extended to regional governments like the Sheyang Economic Development Zone and Sheyang Jingtou, securing incentives and orchestrating foreign investor fictitious projects compliant with local laws [para. 8][para. 9]. These projects amassed over $43 million in capital accounts allegedly through Osun, creating shell companies and exploiting bureaucratic support.
Chengjun Construction Group was a significant partner, drawn by beneficially reduced service fees charged by Zhou [para. 10]. These fees enabled multiple foreign investments, yet local governments and enterprises abused investment targets to mask economic insecurities without due legal accountability [para. 10][para. 11].
A case involving Zhou Meixia led to a contentious legal battle, questioning her guilt regarding illegal foreign exchange trading [para. 12]. Her defense highlighted genuine intent and proper integration within state regulatory frameworks without speculative motives, promoting foreign investment without reselling foreign currency [para. 13][para. 14].
The Donghai County Court dismissed her defense, pointing to a systemic illegal trading set under false pretenses with USD to RMB conversions, ultimately renouncing government involvement in lieu of Zhou's chief accountability in law breaches [para. 14][para. 15]. Zhou appealed the ruling but the Lianyungang Intermediate People's Court reaffirmed her culpability, underpinning the charges as lucrative illicit forex dealings [para. 15][para. 16].
The saga exemplifies the broader issue of artificial foreign investment data demonstration by local governments to meet targets, contributing to regulatory discrepancies and exposing tactics akin to fraud schemes [para. 17]. Despite national regulations urging authentic economic contributions and penalizing falsehoods, gaps in enforcement persist due to undue government-private sector collusion, fostering systemic monetary advantages contrary to foreign investment policies [para. 18][para. 19].
- Chengjun Construction Group Co., Ltd.
承峻建设集团有限公司 - Chengjun Construction Group Co., Ltd. is a major client of Zhou Meixia. From November 2021 to December 2022, Zhou helped the company and others achieve foreign investment tasks, charging fees based on a percentage of the investment amount. The company's legal representative, Sun Mingguo, confirmed government collaboration to fulfill these tasks, aiming to maintain good relations for potential future projects.
- Zhejiang Chouzhou Commercial Bank
浙江稠州商业银行 - Zhejiang Chouzhou Commercial Bank is mentioned in the article in relation to capital account transactions. It references an instance where Zhou Meixia opened a capital account at a branch of the bank in Shanghai for one of her companies to facilitate currency exchanges as part of her illegal foreign exchange operations.
- Jiangsu Anpin Metal Materials Co., Ltd.
江苏安品金属材料有限公司 - The article does not provide specific information about Jiangsu Anpin Metal Materials Co., Ltd. other than mentioning that funds from Xuzhao Company were allegedly transferred to this company for the purchase of bulk commodities. The broader context insinuates involvement in financial misdeeds related to fictitious foreign investment schemes orchestrated by Zhou Meixia.
- Jiangsu Chunsi Textile Co., Ltd.
江苏春丝纺织有限公司 - Jiangsu Chunsi Textile Co., Ltd., registered with a capital of $49.8 million and fully owned by Hong Kong investment, was set up by Zhou Meixia to facilitate foreign capital introduction. Due to issues with tax invoicing at her previous company, Chunsi Co. was formed in September 2021 to continue foreign exchange transactions, claiming to purchase large chemical products in the bonded zone for resale after foreign exchange settlement.
- Jiangsu Xuzhao New Materials Technology Development Co., Ltd.
江苏旭兆新材料科技发展有限公司 - Jiangsu Xuzhao New Materials Technology Development Co., Ltd., referred to as "Xuzhao Company," was established in April 2021 in Yancheng. Its registered capital is 47.8 million USD, fully owned by a Hong Kong company. It was used in illegal foreign investment operations orchestrated by Zhou Meixia to obtain FDI certification through fake trade activities in collaboration with local government entities.
- Shanghai Suzhe Trading Co., Ltd.
上海苏者贸易有限公司 - Shanghai Suzhe Trading Co., Ltd. (referred to as "Suzhe Company") was involved in a fraudulent foreign investment scheme orchestrated by Zhou Meixia. In 2022, Suzhe Company signed an investment cooperation agreement with Jiangsu Sheyang Economic Development Zone Investment Group to introduce at least $40 million in capital. It was part of a network of companies set up to facilitate the inflow of foreign funds disguised as investments, manipulating FDI certifications for financial gain.
- March 1966：
- Zhou Meixia was born in Qidong, Nantong, Jiangsu Province.
- 1989：
- Zhou Meixia graduated from Nanjing University and returned to her hometown to work at the local prosecutor's office.
- 2000：
- Zhou Meixia ventured into business and entered the real estate sector.
- By 2015：
- Zhou Meixia moved to Shanghai to engage in the health supplement industry.
- Second half of 2020：
- Zhou Meixia specialized in facilitating foreign investment introductions.
- April 20, 2021：
- Jiangsu Xuzhao New Material Technology Development Co., Ltd. was founded with Zhou Meixia's involvement.
- May 2021：
- After May, Zhou asked Gao Haiyan to look for places that required foreign investment.
- September 7, 2021：
- Jiangsu Chunsi Textile Co., Ltd. was established by Zhou Meixia.
- November 2021 to December 2022：
- Zhou Meixia assisted Chengjun Group in fulfilling foreign investment tasks.
- March 2, 2022：
- Suzhe Company, controlled by Zhou Meixia, signed an investment cooperation agreement with Sheyang Jingtou.
- March 9, 2022：
- A new foreign-invested company was registered by Zhou Meixia with a shareholder as a Hong Kong company.
- August 2022 to January 2023：
- Funds were transferred multiple times to Su Zhe Company as the 'Outbound Economic Industry Guidance Support Fund'.
- December 17, 2022：
- Zhou Meixia was taken by police in Jiangsu's Yancheng City to a police car in Shanghai.
- August 12, 2024：
- Donghai County Court found Zhou Meixia guilty of illegal forex trading and sentenced her to six and a half years in prison.
- December 26, 2024：
- Lianyungang Intermediate People's Court dismissed Zhou Meixia's appeal, upholding the original verdict.
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