The former founder and chairman of Chinese finance conglomerate Anbang received severe punishment for fraud and embezzlement.
A Chinese court ruled that Wu Xiaohui, who established Anbang in 2004, fraudulently raised 65.25 billion Chinese renminbi and abused his post in profiting himself from 2011 through 2017. In a sentence announced on Thursday in Shanghai, Wu was jailed for 18 years, the «South China Morning Post» reported.
Chinese officials removed Wu in February, as finews.asia reported. To ensure Anbang's stability, the Chinese government is in the process of pumping 60.8 billion renminbi into the insurance giant.
Spending Binge
During Wu's tenure Anbang splurged billions acquiring landmark assets like the Waldorf Astoria in New York. Anbang shelled out $1.95 billion to acquire the property in 2014, a record for a single American hotel.
Other significant overseas holdings that Beijing-based Anbang acquired include life insurers in the Netherlands, South Korea, and the United States.
