Southern Daily News (Reporter/Tang Meng): Foreman Dai has collaborated with a well-known domestic real estate developer for over 10 years. Last year, he was accused of defrauding the company of more than 3.7 million yuan by overstating the amount of work done and altering settlement documents. The Shunde Court found him guilty of contract fraud in the first trial and sentenced him to 13 years in prison. However, both Dai and his defense lawyer insisted that this was a civil dispute. Recently, Dai has appealed to the Foshan Intermediate People's Court.
Case Review: Fraud on 9 construction sites exceeding 3.7 million yuan
The Shunde Procuratorate charged that since 1997, Dai had formed a long-term contractual cooperation with Guangdong Tengyue Construction Engineering Co., Ltd. (hereinafter referred to as "Tengyue Company"), providing installation, dismantling, and maintenance services for material hoists (commonly known as "cranes") at various construction sites under Tengyue Company. From the end of 2007 to February 2010, during the settlement process, Dai exaggerated the volume of work and the project cost by overstating the amount of work done, modifying the settlement amounts, forging signatures of supervisors, and double-settling, thus defrauding Tengyue Company of project funds. According to an audit, across nine projects developed by a well-known domestic real estate developer located in Qingyuan, Zhaoqing, Gaoming, etc., Dai should have received a total of 2,135,485.16 yuan in project funds, but Tengyue Company paid him a total of 5,104,047.24 yuan via bank transfers. As a result, Dai defrauded Tengyue Company of a total of 3,760,915.58 yuan in project funds, of which 792,353.50 yuan was an attempted fraud.
Tengyue Company believed that the main loophole in this process was due to not writing the total amount in both small and capital letters on the measurement forms, allowing Dai to modify the engineering quantities after obtaining signatures through tiered approvals before submitting them to the payroll team. For example, he added a "1" in front or a "0" at the end, causing some of the engineering quantities to multiply several times. Since the payroll team was unfamiliar with the engineering quantities, they processed the forms once all necessary signatures were present, leading to payments being made to Dai.
Courtroom Retraction: This is an economic contract dispute, not fraud
In the courtroom, Dai retracted his confession, stating that he did not defraud Tengyue Company of project funds and therefore did not commit a crime.
Dai's defense lawyer argued that this case essentially involved a contractual dispute between Tengyue Company and Dai, making it a typical civil dispute. The investigative authorities' involvement in the civil dispute using criminal means could be seen as an abuse of public power. Whether Dai exaggerated the volume of work or overcharged for project funds can be clarified by verifying relevant evidence materials, followed by negotiation or direct litigation in court according to the contract agreement.
The defense lawyer also questioned the audit report used as evidence for sentencing. He stated that the audit explanation showed no design drawings or on-site certification materials, indicating "many uncertain factors in the conclusion." Furthermore, Dai had always actively fulfilled his contractual obligations, completing tasks such as installing, dismantling, and maintaining "cranes," merely involving issues of confirming actual work volumes and settlements, which do not fall under the relevant provisions of the Criminal Law.
First-instance Judgment: Sentenced to 13 years for contract fraud
After deliberation, the Shunde Court ruled that Dai's retractions in court were insufficiently justified, and the appraisal procedures were legal. The opinions raised by the defense counsel lacked sufficient reasons and contrary evidence, so they were not accepted.
On September 29, the Shunde Court ruled that Dai disregarded national laws, aimed to illegally possess property, and deceived the victim's property during the performance of the contract, amounting to an exceptionally large sum, constituting the crime of contract fraud. Consequently, he was sentenced to 13 years in prison, deprived of political rights for 2 years, fined 13,000 yuan. The frozen deposits and sealed cars will be returned to the victim, Tengyue Company.
Dai was dissatisfied and appealed to the Foshan Intermediate People's Court.