Luckin Sold Vouchers to Companies Tied to Chairman, WSJ Reports

Lu Zhengyao at the company's IPO at the Nasdaq MarketSite in New York in 2019. 

Photographer: Victor J. Blue/Bloomberg
Lock
This article is for subscribers only.

Luckin Coffee Inc., the fast-growing Chinese chain that’s at the center of an accounting scandal, inflated its sales by selling vouchers to companies that were tied to its chairman and controlling shareholder, the Wall Street Journal reportedBloomberg Terminal.

A fictitious procurement employee also processed more than $140 million of payments for materials and services, the newspaper said, citing internal documents and public records.