Peter Hahn, a North Korean-born naturalised US citizen, was formally arrested yesterday on charges of embezzlement and counterfeiting receipts, his attorney Zhang Peihong said.
Many Christian groups, mostly run by South Koreans, are active along the border. But they are forced to operate underground as China bans foreign missionaries and vows to arrest refugees escaping persecution in North Korea.
Hahn has been based in the border city of Tumen since the late 1990s, when he founded a Christian NGO providing aid to North Korea and help for refugees. He set up a vocational school for local teenagers in 2002.
Authorities this summer froze Hahn's bank accounts and barred him from leaving China, according to Chinese media reports.
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The 74-year-old maintains his innocence of the charges, which "cannot be stood-up," Zhang added.
Hahn is likely to face trial within three months, he said. The maximum sentence for the two crimes is 12 years in prison.
US state department spokeswoman Jen Psaki confirmed the arrest at a briefing and said a consular officer visited Hahn in jail yesterday.