A letter of credit (L/C) fraudster is one of just a handful of entrepreneurs to have been listed as 'problematic' in China's rich list.

The Special Report of China's Rich, released earlier than this month by the Hurun Research Institute, says that Mou Qizhong is one of just 24 Chinese nominees in the list since 1999 that appear to be corrupt.

Appeals

The report points out that 98.7 per cent of nominees in China's rich list operated their enterprises legally.

But the former head of Nande Corporation, Mou, was accused of L/C fraud in 1999 when a court found him guilty.

Life sentence

The entrepreneur subsequently managed to stay out of jail for several years after a string of appeals.

Eventually he was jailed for fraud and insider trading and is reportedly serving a life sentence.

Accusations

Mou and four staff members, including his son, nephew and sister-in-law, were accused of fraudulently obtaining a US$75 million loan from a state owned bank.

The prosecution case rested on the allegation that Mou applied for funds for an import deal he fabricated.

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