Founder of GOME and wife jailed over graft
By Wang Xiang |
May 19, 2010, Wednesday
|
Print Edition
Print Edition
FORMER Chinese corporate high-flier Huang Guangyu and his wife are behind bars - and will remain so for quite some time.
Huang also incurred a record fine.
He was jailed for 14 years yesterday after being convicted of illegal business dealings, insider trading and bribery.
Huang, 41, once the richest person on the Chinese mainland and the founder of GOME Electrical Appliances Holdings, was fined 600 million yuan (US$87,86 million) and 200 million yuan in personal assets were ordered seized by Beijing No.2 Intermediate People's Court.
The Supreme People's Procuratorate said this was the heaviest fine issued against an individual in the history of the People's Republic of China, formed in 1949.
The principal of Shenzhen-listed Zhongguancun Co, Xu Zhongmin, who stood trial with Huang last month for leaking inside information to him, was sentenced to three years in jail.
Huang's wife Du Juan was jailed for 3 1/2 years for insider trading. She was also fined 200 million yuan.
Huang's two firms, GOME and Pengrun, were fined 5 million yuan and 1.2 million yuan respectively on charges of corporate bribery.
Huang did not say in court whether he would launch an appeal. However, his lawyer Yang Zhaodong said the penalties were too severe, according to Caing.com, a business news Website.
Listed as the mainland's richest man in 2004, 2005, and 2008, Huang is the most high-profile entrepreneur to go on trial in China.
He was arrested in November, 2008, several months after he topped the Hurun China rich list for the third time.
Huang was charged with illegal foreign exchange trading in Hong Kong in 2007 and exploiting insider information to gain 3.48 million yuan in profits from shares in Zhongguancun.
He was also accused of giving out 4.56 million yuan in bribes to a number of government officials to gain preferential treatment.
Farming family
His case has incriminated some high-ranking officials, including Huang Songyou, a former vice head of the Supreme Court; Zheng Shaodong, a former assistant to the public security minister; and Guo Jingyi, a former commerce ministry official.
Huang was born to a humble farming family in Shantou in south China's Guangdong Province.
He dropped out of junior high school and went to Beijing, where he rented a 100-square-meter outlet, named it GOME, and started selling home appliances when he was only 17.
About two decades later, Huang owned a multibillion-yuan business.
The GOME chain owned more than 1,300 stores across the country by 2009.
Huang stepped down as GOME's chairman last year, still holding about 30 percent of company shares.
Huang also incurred a record fine.
He was jailed for 14 years yesterday after being convicted of illegal business dealings, insider trading and bribery.
Huang, 41, once the richest person on the Chinese mainland and the founder of GOME Electrical Appliances Holdings, was fined 600 million yuan (US$87,86 million) and 200 million yuan in personal assets were ordered seized by Beijing No.2 Intermediate People's Court.
The Supreme People's Procuratorate said this was the heaviest fine issued against an individual in the history of the People's Republic of China, formed in 1949.
The principal of Shenzhen-listed Zhongguancun Co, Xu Zhongmin, who stood trial with Huang last month for leaking inside information to him, was sentenced to three years in jail.
Huang's wife Du Juan was jailed for 3 1/2 years for insider trading. She was also fined 200 million yuan.
Huang's two firms, GOME and Pengrun, were fined 5 million yuan and 1.2 million yuan respectively on charges of corporate bribery.
Huang did not say in court whether he would launch an appeal. However, his lawyer Yang Zhaodong said the penalties were too severe, according to Caing.com, a business news Website.
Listed as the mainland's richest man in 2004, 2005, and 2008, Huang is the most high-profile entrepreneur to go on trial in China.
He was arrested in November, 2008, several months after he topped the Hurun China rich list for the third time.
Huang was charged with illegal foreign exchange trading in Hong Kong in 2007 and exploiting insider information to gain 3.48 million yuan in profits from shares in Zhongguancun.
He was also accused of giving out 4.56 million yuan in bribes to a number of government officials to gain preferential treatment.
Farming family
His case has incriminated some high-ranking officials, including Huang Songyou, a former vice head of the Supreme Court; Zheng Shaodong, a former assistant to the public security minister; and Guo Jingyi, a former commerce ministry official.
Huang was born to a humble farming family in Shantou in south China's Guangdong Province.
He dropped out of junior high school and went to Beijing, where he rented a 100-square-meter outlet, named it GOME, and started selling home appliances when he was only 17.
About two decades later, Huang owned a multibillion-yuan business.
The GOME chain owned more than 1,300 stores across the country by 2009.
Huang stepped down as GOME's chairman last year, still holding about 30 percent of company shares.
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