Chinese state-owned XCMG official facing criminal charges in alleged fraud case

XCMG, a major Chinese state-owned manufacturer of heavy equipment, is currently facing criminal charges in Canada. Police have filed charges against XCMG Canada official Tao Li for allegedly tampering with serial number plates on equipment sold in the country. The charges stem from an alleged $21 million fraud committed against an Ontario distributor.

XCMG has a history of civil lawsuits related to fraudulently altering serial numbers on its machinery to give the appearance that the machines are newer than they actually are. A veteran heavy equipment dealer, Ryan Martin, detailed his experiences with XCMG in mid-October. Martin's family company, Arctic Machinery, has dealerships in Prince George, Chilliwack, and Kelowna.

He reported that other XCMG dealers in Canada faced similar issues, all involving evidence of serial number tampering and misrepresentation of equipment ages. In July, a Saskatchewan dealer filed a lawsuit against XCMG alleging unlawful tampering with serial number plates on equipment sold in Alberta this year. LTR Equipment, based in Quebec, also filed a similar case, and a lift company in Ontario filed a claim, all accusing XCMG of tampering with serial numbers.

Martin explained that the serial numbers may indicate a machine was built in 2020, but sold as a 2022 machine. XCMG Canada declined to comment on the accusations.