Chinese shipbuilding and ship design group Shanghai Bestway Marine Engineering Design has announced that its second largest shareholder Li Lu is currently under police investigation for fraud.
The alleged fraud case is related to a share transfer deal in which Li sold his shares in Taizhou Jinhaiyun Shipping Equipment to Shanghai Bestway for RMB1.3bn ($192m) in 2015. Shanghai Bestway claims that the company suffered losses due to Li’s alleged fraud activities.
Currently the investigations on the case are still ongoing.
Financially troubled Shanghai Bestway entered into an agreement with new investors Xiamen Longhai Investment and Shanghai Dingguo Corporate Development for a restructuring of the company last month.