Aug. 28 (Bloomberg) — The brother of Chen Jihong, the metals trader said to be at the center of a Chinese loan fraud probe, was sued by Las Vegas Sands Corp.’s Singapore unit over unpaid gambling debts.
Chen Jilong, a so-called premium casino player at Marina Bay Sands Pte, owes S$1.88 million ($1.5 million) and has refused to make payment, according to a lawsuit filed with the Singapore High Court earlier this month. The casino gave him S$3 million credit in November 2011, according to court papers.
Chen Jilong, a Singapore permanent resident, hasn’t hired a lawyer or filed his defense, according to court papers. He didn’t return three phone calls to his office. Marina Bay Sands declined to comment in an e-mailed statement.
Both brothers are directors of Singapore-based metals trader Zhong Jun Resources (S), which is fighting a lawsuit from HSBC Holdings Plc for allegedly failing to repay a bank loan. Chinese officials are investigating whether Chen Jihong, a Singapore citizen, used the same batches of commodities as collateral for loans from several lenders.
Standard Chartered Plc said on Aug. 6 it has made provisions of $175 million related to the potential fraud, while Chinese banks have about 20 billion yuan ($3.3 billion) of exposure, two government officials said July 16, citing findings of an official probe.
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