Notice to Victims of the Lantian Gerui Fraud
The Director of Public Prosecutions (DPP) has commenced civil recovery proceedings in respect of property which has been seized in the UK from Yadi Zhang (also known as Zhimin Qian) (Zhang) and Jian Wen (Wen), and additional assets.
The claim was issued under Part 5 of the Proceeds of Crime Act 2002 (POCA) on 18 September 2024 in the King’s Bench Division of the High Court. The proceedings seek to recover the property on the ground that it is or represents property obtained through unlawful conduct, including fraudulent conduct in China involving a company named Tianjin Lantian Gerui Electronic Technology Co Ltd.
A Property Freezing Order was made on 18 December 2023 under s.245A of POCA and will remain in force, prohibiting the dissipation of the property, until the conclusion of the civil recovery proceedings or until further order of the High Court.
It has been reported that over 128,000 individuals claim to be victims of the fraud, many of whom have already claimed partial redress under a compensation scheme which has been established in China.
The DPP will not seek an order vesting the property in the trustee for civil recovery under s.266 of POCA until a reasonable period has elapsed so that those who claim an interest in the property can obtain legal advice and make any appropriate representations and/or applications to the High Court, including any application under s.281 of POCA (see National Crime Agency v Robb [2014] EWHC 4384 (Ch)).
The UK is mindful of its international treaty obligations with respect to any recovered assets, but any state to state engagement is unlikely to take place before the civil proceedings have progressed to the point where consideration is given to any s.281 POCA claims.
As for the criminal proceedings involving Jian Wen, these have been adjourned until January 2025.
A further update will be published once further directions have been made by the High Court.
This note has been prepared to provide information regarding the approach the CPS is taking in respect of the ongoing legal proceedings before the English courts, it is not intended as legal advice and anyone affected by this fraud should seek independent legal advice.