A human resources manager in Shanghai has been sentenced to more than ten years in prison for creating 22 fake employees and stealing their wages, according to a white paper released by the People's Procuratorate of Minhang District.
Yang, who joined a technology company in 2014, was solely responsible for salary payments, hiring, and processing resignations. Exploiting the lack of oversight, Yang fabricated employment files and set up the fake staff on the company's system, approving wage payments into fraudulently controlled bank accounts.
The scheme ran for eight years, defrauding the company of over 16 million yuan (£1.8 million) in wages and severance pay. It was uncovered in 2022 when finance staff noticed a 'perfect attendance' record for an employee named Xiao Sun, whom no one had ever seen or spoken to.
An investigation revealed that Xiao Sun and 21 other employees on the company's books had never existed. Yang was ordered to return 1.1 million yuan, and their family contributed 1.2 million yuan, but this covered only a fraction of the total stolen amount.
Yang was sentenced to 12 years and two months in prison, stripped of political rights for one year, and fined for embezzlement.
