Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

China's Guangzhou R&F co-chief accused of bribery in U.S., London court hears

Published 12/12/2022, 08:57 AM
Updated 12/12/2022, 10:41 PM
© Reuters. FILE PHOTO: The logo of Guangzhou-based property developer R&F Properties is pictured at a strategic cooperation signing ceremony in Beijing, China July 19, 2017. REUTERS/Jason Lee

By Sam Tobin

LONDON (Reuters) -The billionaire co-chairman and CEO of Chinese developer Guangzhou R&F Properties Co Ltd is wanted in the United States, accused of paying kickbacks to obtain permits for a construction project in San Francisco, a court in London heard on Monday.

Zhang Li, who co-founded Hong Kong-listed R&F, is wanted on a provisional warrant issued in the Northern District of California that accuses him of participating in a scheme to bribe public officials between 2015 and 2020.

Ben Lloyd, representing U.S. prosecutors, said the scheme involved the payment of bribes to officials in San Francisco for the benefit of R&F's U.S. affiliate, Z&L Properties Inc.

R&F, in a statement on its official WeChat account late on Monday, said it is taking "legal action" against a "false accusation". Zhang was accused of bribery because of provision of "banquet dinner and hotel accommodation" to the former San Francisco public affairs chief who was visiting China, it said.

Zhang did not appear on Monday at London's Westminster Magistrates' Court, where his lawyers asked a judge to grant him bail ahead of a legal battle against extradition to the United States.

The 69-year-old, who is worth $2.3 billion, according to Forbes magazine, offered to pay a security of 15 million pounds ($18.4 million).

Mark Summers, representing Zhang, said 10 million pounds of the security would be provided by R&F. He added: "It cannot go higher than that because of the listing rules [of] the Hong Kong stock exchange."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Zhang would provide the other 5 million pounds, Summers said.

Judge John Zani granted bail and imposed a 24-hour curfew on Zhang. The judge also said Zhang must be handcuffed to a member of his court-appointed private security team when he left his house for the purposes of attending court.

In a separate securities filing to the Hong Kong stock exchange on Tuesday, R&F said it did not provide any security money towards bail for Zhang in London, adding it has no interest in Z&L, which is owned by Zhang.

It said that the case will not have any material adverse impact on the company's business and operations.

R&F shares, however, tumbled more than 13% on Tuesday, underperforming a 0.3% fall in the Hang Seng Mainland Properties Index.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.