By Qiao Peng and Linda Ji
R&P recently assisted a leading international software company in securing a criminal conviction in a major contract fraud case involving a former employee. The court found the individual, identified as the principal offender, guilty of contract fraud. The former employee and related parties received fixed-term imprisonment and fines, and were ordered to compensate the client for substantial losses.
The case originated from a whistleblower complaint during the pandemic. When R&P was engaged, the reported employee had already resigned, significant evidence was missing, and restrictions made on-site investigation difficult. Despite these challenges, R&P conducted a thorough preliminary assessment, reconstructed the evidentiary framework, and clarified the legal relationships involved. Based on the firm’s analysis of feasibility, risk, and potential outcomes, the client proceeded to file a criminal complaint.
The subsequent proceedings required extensive evidence collection and multiple filings across jurisdictions. A key challenge lay in persuading local authorities to accept and act upon the case, given their initially cautious stance. The eventual acceptance and prosecution mark a meaningful result in the fight against corporate fraud and illustrate that, with persistence and sound legal reasoning, criminal enforcement can be effectively pursued in China even under complex circumstances.
A detailed case report is available here.
Qiao and her team bring extensive experience in conducting internal compliance investigations for private, multinational, and state-owned enterprises. For inquiries about how they can support your compliance needs or resolve disputes, please contact Qiao at [email protected] or reach out to your trusted contact at R&P.
