A man in Shanghai has been sentenced to more than 10 years in prison after carrying out an elaborate property scam in which he changed the locks on a vacant flat, claimed it was his own, and sold it to two close friends for 700,000 yuan (around £72,000).

The fraud only came to light when the property’s rightful owner visited the flat and discovered that the locks had been replaced. A police investigation exposed the deception, leading to the man’s arrest and conviction. He was sentenced to 10 years and three months in prison and ordered to pay a 100,000-yuan (£10,000) fine.

Friendship Exploited for Financial Gain

The convicted man, identified only by his surname Sun, had once owned two shops, but his business eventually failed, leaving him in serious financial difficulty. He had also previously served a prison sentence for fraud.

Following his release from prison in 2017, Sun was helped by a married couple who were long-time friends. Despite working as migrant labourers and earning modest wages, they regularly supported him with money, food and other essentials during his difficult period. Sun repeatedly assured them he would repay their kindness one day.

False Promise of a Bargain Home

When the couple later spoke about buying an affordable home in Shanghai, Sun claimed he had contacts within government departments who could secure a flat at a significantly discounted price.

Believing his story, the couple began transferring money to him in instalments from 2023. Sun requested payments for supposed booking fees, loan processing costs and other administrative expenses, eventually collecting almost 700,000 yuan.

He later told the couple that a flat had been allocated through a government resettlement scheme but insisted that a further 400,000 yuan would be needed to complete the purchase.

Changing the Locks to Fake Ownership

In reality, the property belonged to another person and had been standing empty for months.

Taking advantage of the vacancy, Sun hired a locksmith, falsely claiming he had misplaced the keys, and had the locks changed. He then showed the flat to the couple, handed them the new keys and persuaded them to sign forged sales documents, convincing them they had legally bought the property.

Real Owner Uncovers the Scam

The deception unravelled in May 2025 when the flat’s legitimate owner arrived with a prospective tenant. After discovering that the original key no longer worked, the owner realised something was wrong and contacted the police.

Investigators examined CCTV footage, which revealed Sun arranging for the locks to be changed. The evidence quickly led to his arrest.

Money Spent on Debts and Living Costs

During questioning, Sun admitted that most of the money he had taken from the couple had already been spent on repaying old debts and covering everyday expenses.

Authorities believe the victims are unlikely to recover much of the money they lost.

More Than a Decade Behind Bars

Following the trial, the court found Sun guilty of fraud and sentenced him to 10 years and three months’ imprisonment. In addition to his prison term, he was ordered to pay a 100,000-yuan fine, equivalent to roughly £10,000.

A Reminder for Property Buyers

The case highlights the importance of carrying out thorough checks before purchasing property, regardless of how well the seller is known. Buyers should always verify ownership records, land registration documents and official paperwork before transferring any money. Trust alone is no substitute for proper legal due diligence, and failing to verify a property’s ownership can lead to devastating financial losses.