Beijing Tech Firm Loses $20M in Elaborate Bonus Payout Fraud

Chinese prosecutors have uncovered a sophisticated $20 million embezzlement scheme at a Beijing technology company, marking one of the most complex digital corruption cases between 2020-2024. The Haidian District Procuratorate's investigation revealed how internal controls were systematically bypassed through collusion between employees and external actors.

The fraud centered around Feng, an employee with unchecked authority over vendor onboarding, bonus structures, and payment approvals. By deliberately creating policy loopholes and sharing confidential data with accomplices Tang and Yang, the group fabricated documentation to divert legitimate bonus funds to shell companies. The scheme operated undetected for a year before discovery, with 140 million yuan ($20M) ultimately siphoned from company accounts.

Prosecutors detail how Yang orchestrated money laundering through multiple fake entities, systematically obscuring the trail of stolen funds. The case appears in the newly released WHITE Paper on Anti-Commercial Corruption as a hallmark example of digital-era financial crimes exploiting internal system vulnerabilities.