JD.Com Says It Had No Prior Knowledge After Arrest Warrant Issued for Ex-Staffer
An Zhuo
/SOURCE : yicai
JD.Com Says It Had No Prior Knowledge After Arrest Warrant Issued for Ex-Staffer

(Yicai Global) Aug. 21 -- JD.com, China's second-biggest e-commerce company, told Yicai Global that it had no prior knowledge of the situation after a media report said Chinese authorities have issued an arrest warrant for the former procurement chief at its consumer electronics business unit.

The former employee, who was a procurement executive at JD.Com's 3C Business Unit, which handles sales of personal computers, telecoms and consumer electronics products, was arrested yesterday for alleged involvement in the Camsing International Holding supply-chain financing fraud case, Caixin reported. He played an important role in the fraud and served as an agent between JD.Com and other companies including Camsing since 2016, Caixin said, citing an unidentified source.

Beijing-based JD.Com has denied any involvement in the case. Since the case is ongoing, it told Yicai Global that the public should refer to information released by the judicial authorities.

Noah Holdings' subsidiary Shanghai Gopher Asset Management was to provide CNY3.4 billion (USD481.5 million) of supply chain financing to Guangdong Camsing Holding Group, a related third-party company of Camsing International Holding, the US-listed company said on July 8.

Luo Jing, Camsing's actual controller, was recently detained by Chinese police for suspected fraud. Gopher, as the fund manager, has filed various lawsuits.

The fund's investment target provides financing for the accounts receivable of Camsing and JD.Com, Wang Jingbo, Noah's founder and chairman said in an internal mail.

JD.Com had nothing to do with the incident and Guangdong Camsing is just a supplier, the e-commerce giant has said. Camsing is guilty of fraud by falsifying its business contracts with JD.Com, and the latter had already reported the case.

Gopher did not verify the contract's authenticity with JD.Com during the fraud, which revealed the firm's major defects in compliance and risk management, JD.Com said. JD.Com is assisting police in their enquiries and hopes that Gopher will face up to its management problems rather than avoid its responsibility, it added.

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Keywords: JD.Com