Hundreds of steel makers in Wuhan have been defrauded for 260 million yuan

On the afternoon of yesterday, hundreds of steel bosses gathered at the creative hotel on the Hankou workers' and peasants' corps, and Baotuan denounced the three steel trading companies in the city for "contract fraud," claiming that 2.6 million yuan worth of steel could not be delivered on time or refunded.

Among the deceived merchants, many of the bosses are in the steel market of the Dan Pond 661 warehouse steel market and have been fighting for many years. The most cheated amounted to more than 22 million.

Ms. Lu said that her company has cooperated with Wuhan Xinan Tongyuan Trading Co., Ltd. in the past three years. Compared with the market price, the price of steel supplied by the company is lower by RMB 200-300/t. Starting in March of this year, the company began to fail to deliver on schedule. Because it is "first after the goods", as of July, accumulated 5180 tons of steel has not been delivered, worth 17.8 million yuan. Considering the risk is too high, the company requested a refund but was not satisfied. Despite not delivering the goods, Xinan Tongyuan also rushed to pay for orders. After the news spread, several large steel users in the circle had aggregated and discovered that the transaction volume of Xinan Tongyuan had increased sharply in the past two months, and there was no money or goods required.

“The steel is cheap recently, everyone wants to buy the bottom,” another steel trader, Tie Long, confirmed the above statement and claimed that he had been deceived more than 3.7 million. After the "Xin'an Tongyuan" story spread, it was discovered that two steel trading companies, Dekangsheng and Zhensheng, were involved, and the group behind the scenes pointed to a trader.

As of yesterday, there were about more than 160 dealers who claimed that 260 million yuan of funds could not be recovered and they could not get steel.

On August 6, several major steel users had met with the legal representative and person in charge of the three companies, but all three companies said that they had no money. During the interview, many steel bosses stated that the number of victims and the huge amount of this incident have caused a major earthquake in the Hankou steel market.

According to reports, on the evening of the 6th, after the negotiations broke, more than 50 angry steel bosses sent the legal representatives and responsible persons of the three companies to the public security organs.

Yesterday, the reporter confirmed from the Jiangan District Public Security Sub-bureau that there are already three criminal suspects. Since alleged contract frauds were formally investigated, the three have been detained by criminals. Due to constant alarms from all over the country, the specific amount of fraud is still being further counted. The police are collecting fixed evidence and stepping up the investigation.