The family resorted to many other scams, including dealing in iron and steel with the Handan Iron and Steel Works in Hebei, a national model for state-owned enterprise reform. Sources said Mr Jin kept 200 million yuan in profits. Details of additional loans totalling 350 million yuan have been found as well as a front company registered in Hong Kong as the Qiao Ruo Company. The father also obtained loans of 50 million yuan from the China Construction Bank and further sums from the Industrial and Commercial Bank and the Bank of China, among others. He also diverted 150 million yuan from the project's resettlement funds to his son's companies.
Former employees believe their boss used a standard scam to transfer the money abroad.
To finance the imports and exports of state trading companies, the Bank of China issues foreign exchange guarantees. This means that if an enterprise fails to repay the bank, the state shoulders the loss. Former employees claim their ex-boss gave cars to senior managers at the Bank of China who have since been fired. Mr Jin was detained for two weeks by Beijing police last year after he failed to repay his debts to the China Construction Bank. The bankers discovered that, following a State Council decision in late 1998, all state organisations have to divest themselves of their commercial enterprises.