China's Xinhua News Agency reported on Saturday that two Chinese companies and their staff related to Chinese fugitive billionaire Guo Wengui have been prosecuted.

A people's procuratorate in Dalian city of China's northeastern Liaoning Province on Friday filed a lawsuit against several executives and employees of Beijing Pangu Investment Co., on suspicion of duty encroachment and fund embezzlement.

The procuratorate in Dalian accused Qu Long, former executive of Tianjin Huatai Holding Group Ltd., of abusing his power to embezzle a huge amount of corporate funds. Qu was directed by Guo to transfer more than 400 million yuan (60 million US dollars) to companies controlled by Guo and for his personal use. 

The hands of billionaire businessman Guo Wengui are folded, reportedly in New York City, US, April 30, 2017.  /CFP Photo

In order to possess the 400 million yuan, in 2012 Guo persuaded Gao Song, Ma Nan and Cheng Xiuhua, all former senior managers with Guo's Beijing Pangu Investment Company, to forge a series of agreements and memorandums and file a false civil court action so Guo could illegally pocket the money.

Defendants Gao, Ma and Cheng are accused of duty encroachment for actively assisting Guo's illegal seizure of Huatai's capital.

On the same day, a people's procuratorate of Kaifeng city of central China's Henan Province filed a lawsuit against Henan Yuda Real Estate Company, which is mainly controlled by Guo, and its former senior staff Zhang Xincheng, Guo Lijie and Xiao Yanling, on charges of defrauding loans and bill acceptance totaling 1.5 billion yuan from seven banks, with part of it transferred to Pangu Investment.

Pangu 7 Star Hotel Beijing sits next to Olympic venue the Bird's Nest. /CFP Photo

Guo is an Interpol "red notice" criminal suspect, who has reportedly been living in New York. Interpol is the global crime fighting organization. However, an Interpol red notice is a request to locate and provisionally arrest an individual pending extradition, not an international arrest warrant, according to the Interpol website.

Earlier, three executives of Beijing Pangu Investment Co. Ltd were sentenced to at least two years in prison for obtaining loans and foreign exchange by fraud. The company was fined 245 million yuan (36 million US dollars).

Related story:

Pangu Investment fined 245 million yuan, executives sentenced to prison for fraud