A rural bank deputy officer, Gong Aiai, nicknamed 'House Sister' was sentenced to three years in prison by a Court in Yulin City of Shaanxi Province in China, Sunday, September 29, for forging multiple identities to purchase properties, according to several news reports.
The court announced its decision after concluding that Gong had purposely provided false identities to obtain properties, "actions that disrupted social order and exerted a negative social impact," reports South China Morning Post. Gong's extra ids have been revoked.
Four police officials who were accused of helping Gong in her illegal activities have also received lesser sentences.
Gong was the deputy head of Shenmu Rural Commercial bank. She has been accused of misusing her banking powers to offer loans to mining operators in lieu of shares or cash, which she used to purchase 41 illegal properties across the country, most of which are located in Beijing. Her $160 million worth real estate portfolio includes one villa, seven flats, seven offices and 26 shops, reports New York Times.
In an earlier trial held Tuesday, Gong denied all the charges and claimed that all the money came from her salary. She also claimed that she didn't know having multiple ids was illegal. During the investigation, police found no evidence of illegal money in her account. However, they received several reports of Gong being involved in inappropriate fundraising, reports China.org.cn.
Gong's illegal activities came under the police scanner in mid-January. The controversy spread like wildfire among the masses as they expressed their outrage at the lax authorities and weak security.
China's looming property bubble and its tight regulations on real estate acquisitions might have added to the increased crime rate in the country. Many other government officials have also been in the news recently for real estate frauds. A senior urban management officer was recently exposed for possession of 21 properties, while another housing director had purchased 25 illegal estates.
However, the real estate industry of china is showing two extreme sides. One, a massive soon-to-crash property bubble and another 'ghost city abundance'. The country's economy has also slid down considerably.
"China's economy slowed for a second straight quarter this year, down to 7.5 percent in April to June from a year ago, compared to 7.7 percent in the first three months," according to CNBC News.