Multiple charges were indicted by U.S. officials to the founder of Asia’s largest manufacturer of aluminum extrusions, who was called «a corrupt businessman», including allegations of $1.8 billion of tariff evasions.
Chinese billionaire Liu Zhongtian and his firm China Zhongwang Holdings faced a 24-count indictment detailing allegations of a conspiracy to sell into U.S. entities he secretly controlled as well as evasion of the anti-dumping tariffs imposed in 2011.
«[T]he bogus sales of hundreds of millions of dollars of aluminum artificially inflated the value of a publicly traded company, putting at risk investors around the world,» said U.S. attorney Nick Hanna, adding that Liu was «a corrupt businessman»
Decade-long «money laundering scheme»
Prosecutors claimed that the firm sold 2.2 million pallets of aluminum to a U.S. entity controlled by Liu between 2011 and 2014 by transferring hundreds of millions of dollars through shell companies in an exercise it called «a massive money laundering scheme».
According to a «Wall Street Journal» report, China Zhongwang did not immediately respond to an inquiry while a justice department spokesperson added that Liu was not in custody.
The charges were made amidst an ongoing trade war between the two states and U.S. officials tied the allegations to broader economic concerns and President Donald Trump’s trade policies.
«The rampant criminality described in this case also posed a threat to American industry, livelihoods and investments,» Hanna added.
