On Feb. 22, Sun Deshun 孙德顺, the former deputy party secretary and president of CITIC Bank stood trial in Jinan, Shandong Province, for allegations of accepting briberies.
Sun was accused of abusing his positions to illegally assist others with credit lines from 2003 to 2019. In return, he accepted money and gifts worth hundreds of millions of dollars.
Fan Xiangpeng 樊祥鹏, a staff member of the Central Commission for Discipline Inspection said an investigation film released on CCTV on Jan. 18 that one of Sun’s characteristics was not to accept cash. He believed that the receipt of cash was too low-end, too simple and crude. The way he cashed in his interests was very specialized, using unique financial means and products to cover up.
Sun was accused of amassing about $154 million, using shadow companies and financial means to complete the transfer of illegal benefits with specialization and sophistication. According to an investigation, he allegedly arranged two of his subordinates as agents to set up two investment platform companies. The so-called legal persons in the foreground of the two companies were actually just “shadow” endorsers for Sun Deshun.
Sun Deshun approved vast amounts of loans for business owners, some of whom used the funds to invest in the assignments and share profits and dividends.
The investigation also found that some real estate company owners were close to him and there was an exchange of interests. For example, a real estate company owner had channeled about 1.5 million dollars to a company controlled by Sun Deshun in the name of investment, and in return was granted a loan credit of more than 630 million dollars through Sun Deshun.
In addition to Sun Deshun, several other senior executives in the CITIC Bank system have been investigated in recent years.
In 2019, Li Xianwen 李先文, former director of the Zhaoqing branch; Liang Qinghua 梁庆华, former general manager of the business department of the Zhaoqing branch; Chen Ying 陈英, former member of the party committee and risk management director of Xiamen 厦门 branch; and Yu Chengxin 于成新, former secretary of the party committee of Harbin branch, were investigated too.