ADVERTISEMENT
ADVERTISEMENT

China says Anbang's founder defrauded investors of $10 billion

BEIJING — China accused the deal-maker who bought the Waldorf Astoria hotel in New York of bilking investors of more than $10 billion.

The Chinese government last month seized Wu’s company, Anbang Insurance Group, in a move seen as making an example of a firm that piled on too much debt too fast and added risks to the country’s already creaky financial system.

The $10.3 billion that prosecutors allege that Wu and Anbang raised illegally would make the case one of China’s biggest financial crimes trials.

Wu pleaded guilty to the charges and asked the court for a light sentence, according to an account of the proceedings posted late Wednesday on the official social media account of the court in Shanghai where he is standing trial. He is almost certain to be found guilty, as Chinese courts convict nearly everyone prosecutors accuse.

ADVERTISEMENT

His plea was a turnabout from what the court had earlier described as a more defiant stance. Earlier on Wednesday, the court had said Wu had told the court he did not know whether what he did constituted a crime, suggesting he would fight the charges. Wu had also denied charges that he had instructed his employees to escape abroad, to change their computers and mobile phones and to delete emails, financial data and corporate records once officials began investigating Anbang in March 2017, according to the court.

Lawyers for the tycoon could not be reached for comment. The court in Shanghai released only a partial accounting of the proceedings online, and an independent description of them was not available. In China, such proceedings are typically closed to foreign news media.

Prosecutors accuse Wu, who founded Anbang, of illegally raising funds from investors by using false financial statements and promotional materials, according to the official account posted by the Shanghai No. 1 Intermediate People’s Court on Weibo, China’s version of Twitter. Prosecutors also charged Wu with embezzlement. If convicted, he could face life imprisonment.

This article originally appeared in The New York Times.

SUI-LEE WEE © 2018 The New York Times

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Here's everything to know about being a virgin on your wedding night

Here's everything to know about being a virgin on your wedding night

7 do's and don’ts of the Holy month of Ramadan

7 do's and don’ts of the Holy month of Ramadan

Top 5 sweetest celebrity mother-child relationships that stand out for us

Top 5 sweetest celebrity mother-child relationships that stand out for us

International Women's Day: 5 Nigerian female celebrities championing women’s rights

International Women's Day: 5 Nigerian female celebrities championing women’s rights

Top 5 female directors in Nollywood

Top 5 female directors in Nollywood

6 things that will break a Muslim's fast during Ramadan

6 things that will break a Muslim's fast during Ramadan

5 benefits of fasting during Ramadan

5 benefits of fasting during Ramadan

5 reasons Easter was more fun when we were children

5 reasons Easter was more fun when we were children

Dos and don’ts of supporting Muslims during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

ADVERTISEMENT
ADVERTISEMENT