Canadian tycoon is imprisoned in China for 13 years for financial offences

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Last Updated on August 19, 2022 by Bitfinsider

According to a court announcement, a Chinese-born Canadian millionaire who vanished from Hong Kong in 2017 was sentenced to 13 years in jail for a series of multibillion-dollar financial misdeeds and his company was fined $8.1 billion.

The Shanghai No. 1 Intermediate People’s Court said on its social media account that Xiao Jianhua had been found guilty of abusing billions of dollars in deposits from banks and insurers that were under his Tomorrow Group’s control and of proposing bribes to authorities.

According to the court, Xiao was fined 6.5 million yuan ($950,000) and his business was penalized 55 billion yuan ($8.1 billion).

When Xiao was last seen in a hotel in Hong Kong in January 2017, it was thought that Chinese authorities had transported her to the mainland. Later news reports said that anti-graft officials were looking into him, but no specifics were disclosed.

According to the Canadian government, his July 5 trial was closed to diplomats.

According to a consular agreement between the two governments, Xiao was not permitted to visit Canadian diplomats because he was deemed to be a Chinese citizen, according to Wang Wenbin, a spokesperson for the foreign ministry.

That showed Xiao might have used a Chinese travel document rather than his Canadian passport to access the mainland. Beijing has previously denied ambassadors access to foreign nationals who entered the country with Chinese identity cards.

A request for comment was sent to the Canadian government in Ottawa by the Canadian Embassy in Beijing.

Tomorrow Group has been connected to numerous anti-corruption cases and regulatory takeovers of financial institutions.

According to the declaration made on Friday, Xiao and Tomorrow Group were found guilty of defrauding the public out of more than 311.6 billion yuan ($46 billion) and misusing 148.6 billion yuan ($21.8 billion) in entrusted assets and funds.

A wave of legal actions against Chinese businesses accused of misbehavior occurred as Xiao disappeared.

That increased the possibility that the Communist Party in power was kidnapping people outside the continent. Chinese police were not allowed to work in the former British colony’s distinct judicial system at the time, according to Hong Kong.

Beijing has since reinforced its grip on Hong Kong, drawing criticism for allegedly breaching the autonomy pledged when the province was returned to China in 1997. In 2020, Hong Kong’s Communist Party enacted a national security law and jailed pro-democracy campaigners.

After conducting an investigation, Hong Kong authorities concluded that Xiao had crossed into the mainland. The following week, an ad in Xiao’s name in the Ming Pao newspaper disputed that he had been seized without his will.

According to the Hurun Report, which tracks the country’s elite, Xiao was worth close to $6 billion at the time of his disappearance, ranking him as the 32nd wealthiest person in China.

Authorities seized nine businesses that Xiao controlled in 2020.

This comprised a company that dealt in financial futures, two securities companies, two trust companies, and four insurers. When the assets were confiscated, they reportedly totaled close to 1 billion yuan ($150 million), according to the business journal Caixin.

Xue Jining, a retired bank regulator, acknowledged accepting 400 million yuan ($62 million) in bribes in a corruption case involving the northern Inner Mongolian bank Baoshang Bank Ltd., which regulators seized from Tomorrow in 2019.


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Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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