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.
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.
A source close to the businessman told reporters 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.
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.
To avoid financial oversight and obtain illegitimate benefits, Xiao and Tomorrow offered government officials shares, real estate, cash, and other assets worth more than 680 million yuan between 2001 and 2021, the court said.
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.
The nine companies included four insurers, New Times Trust Co. and New China Trust Co., as well as Huaxia Life Insurance Co., Tianan Life Insurance Co., Yi’an P&C Insurance Co., and Tianan Property Insurance Co. of China. Chengtong Securities, Guosheng Securities, and Guosheng Futures were the other three.
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, recognize his efforts to make amends.
It stated that Xiao Jianhua received a reduced sentence in accordance with the law because of his commendable actions.
In response to a question regarding Xiao’s right to consular access as a Canadian citizen at a briefing on Friday, Wang Wenbin, a spokesman for the Chinese foreign ministry, stated that Xiao was not entitled to such rights since Chinese law did not recognize dual nationality.
The foreign ministry of Canada stated that it was aware of media reports regarding the sentence and that its representatives will follow the issue and push for consular access.
