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May 5, 2011

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Hilton property owner gets life

A FORMER owner of a Hilton Hotel building in southwest China was on Tuesday sentenced to life in prison on charges including organizing mafia-style gangs, organizing prostitution, loan sharking, bribery and assault.

Peng Zhimin, who owned several local companies and invested in the renovation of the Hilton Chongqing, had all his properties confiscated and was stripped of his political rights for life, according to the Chongqing No. 1 Intermediate People's Court.

Twenty-six other gang members received jail terms ranging from 18 months to life for their mafia activities.

Five Chongqing officials were jailed for between three to 14 1/2 years for sheltering organized crime and bribery.

Peng set up the Qinglong Property Development Co and other companies in 2003 and started organizing prostitution at the venues belonging to his companies. Peng made profits of more than 4 million yuan (US$616,088) from nearly 2,200 prostitution activities in the Diamond Dynasty nightclub, which was housed in the basement of the Chongqing Hilton, China News service reported on Tuesday.

Peng also developed a protected forestland area of nearly 71 hectares for a project without government approval from 2004 to 2009. Peng's gang attacked and threatened residents who protested against the demolition.

To seek protection for his ring, Peng paid 2.5 million yuan in bribes to Chongqing officials, the court said.

Meanwhile, the Chongqing Huayu Advertising Co was fined 5 million yuan for offering bribes to officials and other companies' management groups. The case led to the removal of several high-level officials, including Li Xiaofeng, former head of Chongqing Television, the Economic Observer said.




 

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