China Life, PICC employees found guilty of $455m fraud

China Life (LFE.NYSE, 601628.SH, 2628.HK) and PICC (2328.HK) were found guilty of "financial misconduct" involving more than US$455 million in 2009, state media reported. According to China’s National Audit Office (NAO), eight employees at China Life have been punished for false premium increases worth US$42 million. Among other fraudulent activities uncovered by the NAO was the collaboration between PICC employees and local officials to use falsified policies to defraud a local financial bureau in Hunan of US$1.3 million. Both insurers have confirmed that employees found guilty of involvement in financial irregularities have been punished or dismissed.