28 Aug 2013

‘I’m sorry’: Brit ‘apologises for Chinese data scam’

As Chinese authorities limits the use of the personal data of its citizens, a British fraud investigator makes a “public confession” on Chinese TV to using illegal means to gather information.

China

Peter Humphrey and his American wife Yingzeng Yu, are accused of illegally buying and selling private information, Chinese state media reported on Tuesday. The couple run ChinaWhys, an investigation firm in Shanghai that serves corporate clients.

Speaking to camera, Humphreys said in Mandarin: “I sometimes used illegal means to obtain personal information,” as he sat handcuffed wearing an orange vest.

“I very much regret this and apologise to the Chinese government,” added Humphrey, who worked as a journalist for Reuters in the 1980s and 90s.

Lu Wei, a police officer said the company, registered in Hong Kong, was a “shell company.”

He said: “The company does not have an official office or any staff member.”

Tightening control

Mr Humphrey and Mrs Yu are part of an industry of investigators who help corporate clients screen potential partners and employees or watch for embezzlement and other employee misconduct.

Beijing is tightening control over trade information that can help companies find their way through China’s secretive business world. The Chinese government operates an extensive surveillance network to track China’s public and limits access to data on companies and individuals.

In March 2013 four Chinese employees of the business information firm Dun and Bradstreet were sentenced to prison on charges of improperly buying personal data of Chinese citizens. The share price of a string of Chinese companies have been hit by disclosures of possible financial misconduct.

The latest case could mark an escalation in enforcement against foreign and Chinese investigators.

British concern

The British Embassy in Beijing said it was providing unspecified consular assistance to Peter Humphrey’s family.

In a statement, the foreign office expressed concern at Mr Humphrey’s appearance on state TV.

“We were concerned to see that Peter Humphrey was interviewed about the details of a case which is currently under investigation and has yet to come to trial,” the foreign office said, adding it was continuing to provide consular assistance to Mr Humphrey and his family.