Chinese HR Manager Steals RM9.74 Million from Company by Creating 22 Fake Employees & Collecting Their Salaries

For about eight years, a human resources manager in the Minhang District of Shanghai, China, defrauded his company of a whopping CNY16 million, or approximately RM9.74 million, by ‘hiring’ 22 fake employees and collecting their paycheques. 

His infamous exploits were revealed in the “White Paper on the Prosecution of Duty-Related Crimes by Company and Enterprise Personnel in Minhang District,” published last year, which attracted nationwide attention in China.

A human resources manager in China created 22 fake employees and collected all their salaries for himself

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As reported by UDN, the man, known as Yang, ‘hired’ non-existent employees since joining the company, an unnamed Shanghai technology firm, in 2014.

When he first joined the firm’s human resources department, Yang realised that he was responsible for the reconciliation and management of employees dispatched to its various departments, with the hiring and resignation of employees depending solely on his approval. 

Furthermore, he realised that no one reviewed the payment of salaries, so he came up with a scheme to benefit himself.

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Specifically, from 2014 to 2022, Yang created 22 fake employees and gave them generic Chinese names, such as Xiao Sun, Xiao Li, and others.

Afterwards, he set up multiple bank accounts, which are linked to salary payments and channelled all the monthly salaries to himself. 

The man’s fraud was discovered when the firm’s finance department found something amiss with one of his fake employees

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However, Yang’s scheme was discovered when an employee in the finance department noticed something amiss about an employee named ‘Xiao Sun’, who had been with the company for half a year on record and had perfect attendance, but no one in the company seemed to know anything about him.

This led to an investigation, and Yang’s fraud was unearthed. After getting caught, the human resources manager admitted to defrauding RM9.74 million from the company throughout the eight years.

Yang was sentenced to over 10 years in jail

Yang then paid back CNY1.1 million (RM670,000) to the company, while his family pitched in to pay back CNY1.2 million (RM731,000).

However, this is nowhere near the amount of money he had defrauded from the firm, hence the case was brought to the authorities.

Yang ended up being sentenced to 10 years and 2 months in jail, deprived of political rights for 1 year, and fined for embezzlement. 

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So, what do you guys think of this intriguing case? Share your thoughts with us in the comments. 

Also read: M’sian Businessman Allegedly Cheated Out of RM2.4 Mil by Man ‘Selling’ a Lamborghini Aventador S