Four former senior executives of troubled Kangde Xin Composite Material Group Co. Ltd., including its founder and actual controller Zhong Yu, are set to face criminal trial for their alleged roles in an 11.5 billion-yuan ($1.7 billion) fraud that triggered a series of bond defaults and a debt crisis at the company.
Police in the city of Zhangjiagang, where the Shenzhen-listed laminating film manufacturer is based, have sent the case to the public prosecutor's office for further investigation and prosecution, the company said in a filing on Tuesday. Xu Shu, the general manager of the company at the time of the fraud; Wang Yu, former finance director; and Zhang Lixiong, previously head of the treasury department, are also facing prosecution.
