Ethics Newsline®

HAIKOU, China
China last week kicked off one of the country’s largest-ever fraud trials, putting 25 people on trial for allegedly embezzling roughly $3.15 billion in a securities scam that ended in 2002.

The trial, which is being held on the southern island of Hainan, began last week by focusing on alleged mastermind Shi Xue, the former president of Dailan Securities, which was shut down by the government.

Shi is accused of conning investors out of funds they thought were buying treasury bonds. Instead, prosecutors say the money was embezzled and used to trade shares and buy properties, enriching Shi and his cohorts, reported the Associated Press.

Shi allegedly pocketed $31.5 million himself — the largest-ever amount for a single embezzlement defendant in China, according to the AP.