Luo Jing exploited her company's business relationships with JD.com and Suning to commit fraud. She fabricated accounts receivable, privately stamped JD.com and Suning's seals, and forged contracts and financial documents, misleading financial institutions into believing they were genuine. Thus, she was able to obtain financing from these institutions. Before the case was exposed, Luo Jing and her companies defrauded various entities of more than 30 billion RMB.
On November 24, Shanghai Gefei Asset Management Co., Ltd., under the control of Noah Holdings, filed a lawsuit against the Chengxing companies and JD.com in the Shanghai Financial Court, demanding the repayment of the entire loss of over 3.5 billion RMB recognized in the "Chengxing series" criminal case.
Luo Jing, the central figure in the case, served as the legal representative and executive director of multiple companies. She was sentenced to life imprisonment for suspected fraud and bribery, and the case is still under second-instance review. Luo Jing's corporate empire spans across business management, investment, supply chain, and the internet, among other fields. She was once hailed as the "Mulan of the Business World" for her commercial success. However, the fraud case she is implicated in involves multiple financial institutions, causing an estimated economic loss of about 8 billion RMB.
In the case, the Chengxing series companies are accused of fabricating supply chain trades with JD.com and Suning under the command of Luo Jing and Luo Lan, defrauding several financial institutions, including Xiangcai Securities, Moshan Factoring, Yunnan Trust, and Anhui Zhongxin, of financing.
Additionally, a key employee of Noah Wealth, identified as Mr. Fang, is also implicated. Reports indicate that Mr. Fang accepted bribes from Luo Jing's sister Luo Lan, totaling over 2 million RMB. He surrendered in June 2019 and was sentenced to three years in prison in March 2021.
Despite Noah Wealth's lawsuit against JD.com and Chengxing, many legal experts and investors are skeptical. They suggest that this move may be just a strategy for Noah Wealth to placate investors and buy time. The "collusion" within Noah Wealth and the confirmed forgery of contracts and seals in the first-instance criminal case against Chengxing's actual controller Luo Jing make the prospects of debt recovery bleak.
On November 1, 2022, the Shanghai No. 2 Intermediate People's Court issued a first-instance verdict against Luo Jing, sentencing her to life imprisonment. Luo Lan received a seventeen-and-a-half-year sentence, and another ten individuals involved were sentenced to various terms. The judgment revealed that all contract seals involved in the case were forged, and JD.com and Suning had not signed the related contracts with Chengxing series companies.
Currently, Noah Wealth's efforts to recover debts from JD.com seem pessimistic. Legal experts note that the situation is complicated by the confirmed forgery of Chengxing's actual controller Luo Jing's contract seals and the cooperation of Noah Wealth's internal staff with Chengxing series.
The development of the case continues to be closely monitored, with more details pending further disclosure.
