Chinese-Canadian billionaire Xiao sentenced to 13 years in prison | Corruption

The Shanghai court said tycoon Xiao Jianhua engaged in corrupt practices, including bribes and illegal use of funds.

A Shanghai court has sentenced Chinese-Canadian billionaire Xiao Jianhua to 13 years in prison and a record fine of 55.03 billion Chinese yuan ($8.1 billion) for his conglomerate Tomorrow Holdings Co.

Xiao and his Tomorrow Holdings have been charged with illegally absorbing public deposits, betraying the use of entrusted assets, illegally using funds and paying bribes, said Friday. Shanghai’s first intermediate court.

Xiao was fined 6.5 million yuan ($954,655) for the crimes, the court heard.

The court said that Xiao and Tomorrow had “seriously violated the financial management order” and “damaged the financial security of the state”.

From 2001 to 2021, Xiao and Tomorrow Holdings donated stocks, real estate, cash and other assets to government officials totaling more than 680 million yuan ($99.87 million), for escape financial scrutiny and pursue improper interests, the court said.

Chinese-born Xiao, known to have ties to China’s Communist Party elite, has not been seen in public since 2017 after being investigated in a conglomerate crackdown. by the state.

In July 2020, nine of the group’s linked institutions were seized by Chinese regulators as part of a crackdown on risks posed by financial conglomerates.

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