Chinese HR Manager Jailed for Embezzling $2.2 Million Through Fake Employees

Over eight years, a Shanghai HR manager exploited payroll loopholes to create 22 fictitious employees and siphon millions in salaries and severance payments.

• Yang, an HR manager in Shanghai, embezzled 16 million yuan (approximately $2.2 million) over eight years by creating 22 fake employees.
• He exploited his sole control over payroll processes at a labor services company to fabricate employee records and redirect salaries to bank accounts he controlled.
• The scheme was uncovered in 2022 when a tech firm's finance department noticed irregularities, including a 'ghost employee' with perfect attendance and timely payments.
• Yang was sentenced to 10 years and two months in prison, fined, and ordered to repay part of the stolen funds, with his family contributing to the restitution.
• The case highlighted significant flaws in payroll oversight systems and sparked widespread discussion on social media about workplace fraud and accountability.

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