Billionaire tycoon Xiao Jianhua, reportedly abducted by Chinese security agents in 2017, has been sentenced to prison, and his conglomerate given an unprecedented $8 billion fine.
A court in China has sentenced Xiao Jianhua to 13 years of prison while the conglomerate he founded, Tomorrow Group, was given a 55 billion yuan ($8.1 billion) fine, according to a statement by a Shanghai-based court last week.
The court indicated that Xiao was found guilty of bribery and illegally amassing public deposits, using both funds and entrusted assets, corresponding to a breach of trust.
Tomorrow Group and Xiao used Baoshang Bank as a conduit, the statement said. It was seized by the government in 2019 and placed into bankruptcy last year. The group illegally borrowed funds from Baoshang Bank over the course of 14 years, interfered with its daily operations, and paid bribes totaling 680 million yuan in value. These were made to public servants as a way to curry favor or circumvent financial regulation.
No Consular Protection
Xiao is a Canadian citizen, but China’s Ministry of Foreign Affairs said the billionaire tycoon does not have the right to consular protection from other countries as Beijing does not recognize dual nationality.
Xiao famously appeared on media headlines after he disappeared from Hong Kong's Four Seasons Hotel in January 2017. According to several reports, he was allegedly abducted by Chinese security forces with five agents getting out of two vans, after which they entered the luxury hotel, knocked at Xiao’s flat on the 28th floor, and subsequently entered. Xiao emerged two hours later and allegedly passed through the Hong Kong-mainland China border 12 hours after.
According to Hurun, Xiao was the 32nd richest individual in China in 2016 with an estimated net worth of $6 billion. He held businesses ranging from insurance to mining.
