A Beijing-based oil trader involved in a fraud that allegedly employed fraudulent letters of credit (L/Cs) has been released on bail.

The head of Swiss trading giant Trafigura's Beijing office, Li Bo, was detained eight months ago and has so far not been charged.

Detentions

Singaporean national Li was detained last June for his alleged part in a fraud that resulted in a private Chinese trader suffering losses of US$32 million.

Li was one of two Trafigura employees detained after Chinese trader, Qingdao United Energy, filed a complaint to the authorities claiming it had suffered the losses through trade financing deals with Trafigura.

Second suspect

Another of Trafigura's Beijing-based oil marketers, Tian Meng was arrested in August 2014, but has also not been charged.

However, Chinese police last year asked prosecutors to charge Tian with fraudulently obtaining L/Cs and contract fraud.

Trafigura maintains that the matter is a commercial dispute and the Chinese should not involve police or public prosecutors.

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