China Sentences Xiao Jianhua To 13 Years In Prison & Fines His Company $8.1 billion
China Sentences Xiao Jianhua To 13 Years In Prison & Fines His Company $8.1 billion
Chinese-Canadian billionaire Xiao Jianhua was sentenced to 13 years in prison and fined his Tomorrow Holdings conglomerate 55.03 billion yuan ($8.1 billion), a record in China, by a Shanghai court on Friday. He has not been seen in public since 2017.
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According to the Shanghai First Intermediate Court, Xiao and Tomorrow Holdings were accused of stealing public deposits, misusing entrusted property, using unlawfully obtained money, and engaging in bribery.
Furthermore, both parties had acknowledged their wrongdoing and worked together to restore losses and recoup unlawful earnings, thus the sentence was lessened.
China Sentences Xiao Jianhua To 13 Years In Prison, Fines His Company $8.1 billion
A source close to the businessman told Reuters at the time that China-born Xiao, who is believed to have connections to China’s Communist Party elite, was last seen being carried away in a wheelchair from an opulent Hong Kong hotel in the early hours with his head covered.
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According to the court, Xiao and Tomorrow “seriously violated a financial management regulation” and “damaged state financial security.” The entrepreneur was also penalized 6.5 million yuan for the offenses.
In order to avoid financial oversight and pursue unethical benefits, the court claimed that from 2001 to 2021, Xiao and Tomorrow donated shares, real estate, cash, and other assets to government officials totaling more than 680 million yuan.
As part of a campaign to reduce the risks presented by financial conglomerates, Chinese officials seized nine of the group’s affiliated banks in July 2020.
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Four insurers—Tianan Property Insurance Co of China, Huaxia Life Insurance Co, Tianan Life Insurance Co, and Yi’an P&C Insurance Co—along with New Times Trust Co. and New China Trust Co. were included in the nine companies. Chengtong Securities, Guosheng Securities, and Guosheng Futures were the other three.
China Sentences Xiao Jianhua To 13 Years In Prison & Fines His Company $8.1 billion
According to the court, starting in 2004, Xiao and Tomorrow had extensive control over a number of financial institutions and online payment systems, including the bankrupt Baoshang Bank, through a complex network of indirect shareholders and anonymous ownership.
It said that Xiao utilized the illicit proceeds to buy financial institutions, trade stocks, and make investments abroad. It did, however, recognise his efforts to make apologies.
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It stated that Xiao Jianhua received a reduced sentence in accordance with the law because of his commendable actions.
During a routine briefing on Friday, a question regarding Xiao’s ability to consular access as a Canadian citizen was raised. Chinese Foreign Ministry spokesperson Wang Wenbin responded that Xiao was not entitled to such privileges because Chinese law does not recognize dual nationality.
An inquiry for comment was not immediately answered by the Canadian Embassy in Beijing. Tomorrow Holdings could not be reached for comment right away.
($1 = 6.8056 Chinese yuan renminbi)
(Reporting by Tony Munroe, Ziyi Tang, Ryan Woo, Ellen Zhang, Eduardo Baptista, and Meg Shen; Editing by Kim Coghill and Stephen Coates)
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