Liu Jing: Sinorg's Board Chairman Was Detained for Defraud

It is reported that Shanghai Sinorg Group’s president Wang Nongyue confirmed on May 16 that his company’s board chairman Liu Jing was under criminal detention a day before. Liu might
be accused of economic defraud, loss of national assets, impersonating senior government official’s child, forging ID cards and violating anti-monopoly law.

Liu Jing, whose true name is Jin Yueyi, was from Zhejiang.
She never went on her study after graduating from junior middle
school. She is the board chairman of Shandong Sinorgchem Co., Ltd (Shandong Sinorg) and Shanghai Sinorg Group. She owns more than 50% of the two companies’ stocks and her total assets is more than 2 billion yuan (USD 293.1 million). Sinorg is the leading
company of China’s rubber ingredients industry with taking more than 60% of the market share.

Liu Jing, who claimed to be the daughter of a senior official of the Central Discipline Inspection Commission, has three different ID cards. From 2004, she gradually became the controlling shareholder of Shandong Sinorg. In December 2005, she took the board chairman of Shandong Sinorg. Last September, Shandong Sinorg founded Shanghai Sinorg Group. In May 2008, there were reports saying that Liu Jing was suspected to defraud stock rights with false indentity. Last November, she was controlled by the policemen after returning from Singapore.

After the disclosure of her false identity, Liu first asked her agent Wang Hao to
establish Jiangsu Sinorg and sold most of Shanghai Sinorg Group’s assets and the operating assets of Shandong Sinorg to Jiangsu Sinorg. Then she sold 40% of Jiangsu Sinorg’s stock rights to the US Carlyle Group.

It is said that the shareholders of Sinorg found a great capital leak after Liu’s detention. Last year 1.2 billion yuan (USD 175.8 million) went away. In addition, the real amount of investment from Carlyle Group is beyond the examination limitation of the Ministry of Commerce.

On May 20, Jiangsu Sinorg declared that Liu Jing is neither the shareholder nor senior manager of the company and it will accuse Wang Nongyue of his unreal sayings.