The case is the first to result in convictions for money laundering since the country's law on anti-money laundering was enforced on January 1 this year, said the Hongkou District People's Court in Shanghai.

Pan Rumin, the principal offender in the case, was sentenced to two years and fined 60,000 yuan (US$8,000). Zhu Suzhen was sentenced to 16 months and fined 20,000 yuan (US$2,667). The other two accomplices, Li Daming and Gong Yuan, were given jail terms of 15 months and fines of 20,000 yuan.

According to Pan's confession, he met a Taiwanese man called "Ayuan" in May 2006. They agreed that Ayuan would siphon money from people's online bank accounts and Pan would withdraw the money. Pan would then be entitled to one ninth of the illegal money.

Pan and his accomplices borrowed dozens of ID cards and registered about 90 bank cards in July and August last year. Ayuan transferred the stolen money from the online accounts to those cards.

They withdrew about 11 million yuan until the Shanghai Branch of Industrial and Commercial Bank of China became suspicious of the cards and informed the local police on July 20 this year.

The police nabbed the four suspects four days later and have so far retrieved 300,000 yuan (US$40,000). But "Ayuan" fled with the rest of the money and is still at large, the court said.