During the same period, Zhang Qingmin directed others to transfer the fraudulently obtained bank funds into accounts controlled by Zhang Shumin.

To conceal and hide the proceeds from Zhang Qingmin's loan fraud, Zhang Shumin dispersed more than 1.4 billion yuan into accounts held by money launderers.

The funds were later transferred to locations including China's Hong Kong Special Administrative Region, with part of the money moved to Cyprus, where the two used the funds to purchase real estate and make deposits, the statement said. In May 2016, the pair fled abroad.

The court said in the statement that there is evidence proving Zhang Qingmin committed loan fraud and Zhang Shumin engaged in money laundering. Both have been on the run for more than a year since warrants were issued for their arrest and have not yet been apprehended.