A 43-year-old Chinese entrepreneur and founder of Leon Cycle, a brand specializing in electric bicycles, has been charged on suspicion of European customs fraud and subsequently detained by health officials.
scandal in the world of cycling. According to information from the Paris company, confirmed by AFP, Lijun D., founder of the German brand Leon Cycle, was arrested by customs officers from the Financial Judicial Investigation Service (SEJF). He was remanded in custody at the health prison in Paris on Friday. The leader is accused of European customs fraud and the introduction of a customs avoidance scheme in 2018. The damage is estimated at 26 million euros.
Founded in Hanover in 2014, the company employs 51,200 people worldwide, around thirty of them in France. It is present in France, Germany, Italy, Spain, the United States and Australia. On its website, it states that its products are “designed in Germany and manufactured in Western Europe.” The bikes, which range in price from 1,000 to 2,000 euros, will be sold online, in Leon Cycle stores and in large specialist shops under the NCM brand.
According to Le Parisien, customs officials examining a container at a French port a few months ago found that goods imported by his company Leon Cycle were declared as coming from South Korea and not China, allowing for lower tariffs. Finally, Lijun D. would also be targeted for suspected money laundering. Leisger Holdings Ltd, “the principal holding company” of Leon Cycle, is incorporated in the Cayman Islands.
Chinese consulate informed of arrest
In addition, the bicycles “were also delivered as a kit, which gives the impression that they are spare parts. A nuance that also allows you to pay a much lower VAT,” says Le Parisien. Investigators are scheduled to travel to the Czech Republic and Romania, where the bikes will be assembled before being presented as goods made in Europe.
One of his lawyers, Me Rodrigue Flahaut-Prévot, told AFP the €26 million figure was based on “extrapolations” and showed his client denied any fraud. intends on Monday to file a release petition for his client, who he says has “full representation warrants” and fears he is “the stake in a trade war between Europe and China.” The Chinese consulate was also informed of the arrest of its national.
“There is nothing about money laundering. The European Public Prosecutor’s Office is extrapolating because the main holding company is based in the Cayman Islands. Mr D. is a businessman in a stable situation who has no place in detention,” affirms Me Flahaut -Prevot.