Prosecutors in Hebei Province have charged 44 people believed to be members of a heavily armed organized crime syndicate that allegedly extorted 800 million yuan (US$104.9 million).

It is the largest amount of money involved in such a case in China's history.

The accused appeared in Zhangjiakou Intermediate People's Court, Hebei, on Monday morning on charges of contract fraud, illegal possession and purchase of ammunitions, stealing guns, public fighting and disorder, assault with intent to injure, inciting violence, illegal detention, illegal search and illegal disposition of sealed-up property, the Yanzhao Metropolitan News reported yesterday.

The gang allegedly committed the crimes between 2002 and 2006 in Hebei's Tangshan City.

Suspected ringleader Yang Shukuan, 39, was arrested by police on March 17 on charges of contract swindling at his Huayun Co in Tangshan.

Yang's alleged gang is believed to be the country's biggest organized criminal group, with large stashes of weapons and ammunition.

Police seized 35 guns and more than 330 bullets from Yang and his gang, the newspaper said.

Huayun Co allegedly swindled nearly 69 million yuan via contracts from a Hebei industrial trading company in 2005 when Huayun planned to buy an iron ore mine in Tangshan, prosecutors said in a 45-page indictment.

Yang, who was also reportedly addicted to drugs and a known womanizer, allegedly recruited about 40 roughnecks, mostly ex-convicts, and bribed police officers to establish his gang.

Yang and his accomplices allegedly threatened mine owners with guns and other heavy weapons so they could occupy their mines and companies.

Yang also "borrowed" money from local companies in deals reached under threat of violence. These deals brought him at least 500 million yuan, according to the report.

A subordinate's wife was forced to be Yang's mistress, and he allegedly forced her to take drugs, according to the report.

(Shanghai Daily January 23, 2008)