Fraud duo jailed for IOU scam

Two moneylenders, who duped a borrower into signing an IOU for an amount six times higher than the original loan and sold his house, have been sentenced to up to six years in jail.

Two moneylenders, who deceived a borrower into signing an IOU for an amount six times higher than the original loan and then sold his house, which was taken as collateral, were sentenced to up to six years in prison and fined for fraud by the Yangpu District People's Court, prosecutors said on Thursday.

Prosecutors with the Yangpu District People's Procurarorate helped the victim Liang retrieve most of his loss by urging the two men to return the illicit gains and coordinating with different parties involved in the case.

According to the procuratorate, in February 2016, Liang had an urgent need for money and borrowed 300,000 yuan (US$43,350) from the two men Yao and Zhang, who promised him that the interest would be low. However, later they duped Liang into signing an IOU for 1.8 million yuan and told him the amount in the IOU would not matter. They also did notarization of the IOU and asked Liang to leave the property certificate of his house with them as collateral.

In a bid to get the money from them as soon as possible, Liang obeyed all their requirements. Yao and Zhang also transferred 1.8 million yuan from their bank account to Liang's account and asked him to withdraw 1.5 million yuan and return it to them, thereby forging a bank transfer record.

Four months later, Liang found that his house had been sold off for 1.8 million yuan. To drive Liang and his family away from their house, Yao and Zhang used ploys like damaging the door and making threatening phone calls to Liang.

The chief culprit Yao was sentenced to six years in jail with a fine of 25,000 yuan, while his accomplice Zhang was given five years in jail with a fine of 20,000 yuan.

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