Bank Employee Fakes "High-Rate Reverse Mortgage" Scheme, Convicted of Embezzling 733 Million
A bank employee fabricated a "high-rate reverse mortgage" scheme to embezzle funds from friends and acquaintances. The scam was uncovered, and the perpetrator was convicted of fraud.
According to court documents, Jiuming Zhu, a former employee of Jilin Bank, created a fake "high-rate reverse mortgage" investment business between April 2019 and October 2021. He promised investors high returns, with a weekly interest rate of 2%.
Zhu's victims included Xu Ming, Zhang Wei, and Yu Hai, among others. He convinced them to invest by producing fake documents and pretending to have connections within the bank.
Bank Employee Fakes "High-Rate Reverse Mortgage" Scheme
High-Interest Promise Hides a Fraudulent Trap
Zhu was born in 1990 and had worked at Jilin Bank. He had a university background and a reputation as someone who understood the financial industry. However, unbeknownst to his friends and family, he was deeply involved in gambling and owed a large debt.
To fill the debt gap, Zhu concocted a plan to fake a "high-rate reverse mortgage" investment business. He used his position at the bank to convince his friends and acquaintances to invest, promising high returns.
The first victim was Xu Ming, who had known Zhu for many years. In 2020, Zhu told Xu that he needed funds urgently to complete a "over-the-bridge" investment project (i.e., reverse mortgage) and promised to return the principal and interest within a week.
Zhu's scam was so convincing that Xu Ming and others began to invest, thinking they would receive high returns. However, Zhu used the funds to pay off his personal debts and gamble online.
Fraud Conviction for Embezzling 733 Million
The scam was eventually exposed in September 2021, when Xu Ming asked Zhu to return his investment. Zhu refused, claiming that the bank card had been frozen. This led to a confrontation between Xu and Zhu, which ultimately revealed the truth.
Zhu's fraud totalled 733 million yuan, with losses suffered by Xu Ming, Zhang Wei, Yu Hai, and others. He was sentenced to ten years and eleven months in prison, as well as a fine of 10 million yuan.