A man borrowed over $486,000 from his friend, but after three years, he not only failed to repay the debt but also filed a lawsuit, claiming: "I am the one who lent the money."

Borrowing money without repaying and suing the lender in court, the man ultimately faced bitter consequences.

In 2012, Mr. Yao in Shanghai, China, met Ms. Yan, a friend of his wife. Since they worked in the same industry and frequently helped each other, the relationship between Mr. Yao's family and Ms. Yan grew closer. That same year, Ms. Yan introduced Mr. Yao to several business projects. However, due to insufficient funds, Mr. Yao borrowed money from Ms. Yan multiple times using three of her credit cards.

Over the course of a year, Mr. Yao borrowed more than $486,000 through credit cards. Each month, he would repay by transferring money directly to Ms. Yan's bank account, and she would use these funds to pay off the credit card debts.

In 2013, Mr. Yao further requested Ms. Yan to mortgage one of her properties at a bank. Mr. Yao was the borrower, while Ms. Yan served as the guarantor. Through this mortgage, Mr. Yao successfully borrowed $314,000 and quickly invested the money in various projects. By this time, Mr. Yao owed Ms. Yan over $881,000.

Trusting Mr. Yao and his wife, Ms. Yan rarely pressed them for repayments, assuming they would settle the debt on their own. However, in 2017, she unexpectedly received a court summons. It turned out that Mr. Yao had filed a lawsuit against her. He used records of his prior bank transfers as "evidence" to claim that Ms. Yan had borrowed money from him and failed to repay it.

On July 24, 2017, the court held a hearing on this civil case. During the proceedings, Mr. Yao declared, “I have lent Ms. Yan money for investments over several years, amounting to more than $881,000, but she has refused to pay me back. I am forced to sue her to demand repayment and corresponding interest.”

However, the local court dismissed Mr. Yao's lawsuit, stating that his evidence was insufficient and unconvincing.

Outraged by what she saw as Mr. Yao’s betrayal, Ms. Yan decided to clear her name. On March 13, 2021, she sought assistance from the local police. By May 2022, after a thorough investigation, the police arrested Mr. Yao and exposed his scheme. The case was then handed over to the local prosecutor’s office for review and prosecution.

After reviewing the case, the Qingpu District People's Procuratorate found that Mr. Yao had filed a civil lawsuit based on fabricated claims, which constituted a violation of China's Criminal Law. On May 22, 2023, the Qingpu District People’s Procuratorate in Shanghai formally charged Mr. Yao with falsifying legal proceedings.

On June 1, 2023, the Qingpu District Court ruled against Mr. Yao. The court ordered him to repay the money he owed to Ms. Yan, sentenced him to 1 year and 6 months in prison, and imposed a fine of $14,500 for his fraudulent actions. The case was concluded at this point.