Chinese property tycoon Zeng Wei arrested on US island of Saipan

Want China Times, Staff Reporter 2014-01-30

Zeng Wei, who faces extradition to Hong Kong on bribery charges.
(Internet photo)

Chinese property tycoon Zeng Wei has been arrested on the US island territory of Saipan and could be extradited to Hong Kong to face bribery and conspiracy charges, reports the Beijing-based Caixin media group.

The 51-year-old Zeng is currently being held on suspicion of making false statements to border agents in Saipan, a small island northeast of Guam in the west Pacific Ocean. Hong Kong authorities are seeking to extradite Zeng after he skipped bail in the territory in July 2011 when facing charges over a loan scandal involving two senior executives at the Hong Kong branch of the Industrial and Commercial Bank of China, the largest bank in the world.

Executive Derick Chan Po-fui was jailed for two years and Chan Yick-yiu was jailed for three after being found guilty of accepting HK$5.8 million (US$474,000) in cash and gifts from Zeng in 2010 in return for approving and extending a series of loans made out to his various companies since 2006. For his part in the crime, Zeng was charged with three counts of offering an advantage to an agent and conspiracy to deal with property known or believed to represent proceeds of an indictable offense, but fled the country before his trial.

Hong Kong's Independent Commission Against Corruption has issued a statement thanking US authorities for their "valuable assistance," noting that a formal request for Zeng's surrender is under preparation and will be submitted to the US within 60 days.

US court documents indicate that Zeng arrived in Saipan from Shanghai on Jan. 16 and attempted to enter the island on a visitor visa. He was using a People's Republic of China passport with the name Liu Zhiqian, though fingerprints taken confirmed his true identity.

After refusing to cooperate with authorities, Zeng was placed in custody. He has since undergone three court hearings and has been labeled a "serious flight risk" by a judge.

Zeng has been described in court as a businessman with the majority of his businesses in mainland China. He was identified as the major shareholder and a director of United Win Holdings, which was principally engaged in developing properties and operating hotels and golf courses via its subsidiaries or affiliated companies. He is also said to have operated several other businesses including Kostar Investments Limited and Shine City International Limited.

The property tycoon was once named one of "China's 100 Real Estate Heroes" and "China's Top 10 Property Entrepreneurs," according to Caixin. His immense wealth was the subject of reports in 2010 when the Sydney Morning Herald claimed that he planned to demolish and rebuild a US$32 million mansion on Sydney Harbour.

Zeng had been in the spotlight previously as he was widely reported to be the son of Zeng Qinghong, China's former vice president and a former member of the Politburo Standing Committee, China's highest decision-making body. However, this claim has been vehemently denied by Zeng Wei, who told Hong Kong media that he is in no way related to the retired political heavyweight.

Zeng's wife, reportedly named Nicole Yang, was born in Beijing in 1972 and attended the University of California and later Harvard. Chinese netizens who claim to know of her background say she comes from a billionaire family with ties to the family of former US president George W Bush. Sources say she was with Zeng when he was arrested.