Outcome
According to YunTing Law Firm’s report dated 9 May 2026, prosecutors issued a decision not to prosecute an individual identified as Kang who was suspected of obtaining a loan by deception. Li Shu participated in the defence team. The source states that the available evidence was insufficient to establish the offence and that the individual was released after 620 days in custody. This was a prosecutorial non-prosecution decision, not a court judgment of acquittal.
Defence work
The team examined collateral, the use of funds, the bank’s lending process and the individual’s involvement in connection with loans totalling RMB 70 million. It advanced arguments concerning the value of genuine collateral and any loss to the bank; whether funds were used to refinance existing debt at the bank’s direction; the relationship between the lending decision and allegedly false materials; the individual’s role in the application and use of funds; and the distinction between civil disputes and criminal liability.
Scope of the account
Statements concerning collateral valued at RMB 970 million, the movement of funds and the individual’s involvement are presented here as defence arguments described by the source, rather than as independently verified judicial findings. The full non-prosecution decision is not reproduced in the report; its text governs the precise facts and reasons.