Former Anbang Insurance Group Co. Ltd. Chairman and CEO Wu Xiaohui has been sentenced to 18 years in prison, Xinhua News Agency reported May 10, citing a Shanghai court ruling.
The Shanghai No.1 Intermediate People's Court said Wu's behavior constituted fraudulent fundraising and embezzlement, ruling that 10.5 billion yuan will be confiscated from Wu.
The court said Wu used many companies to assume control of Anbang Insurance Group and Anbang Property & Casualty Insurance Co. Ltd. and concealed the true ownership of the shareholding companies.
Since January 2011, Wu used Anbang P&C and other companies as financing platforms and asked others to fabricate documents to fraudulently obtain regulatory approval for the continued sales of investment-type insurance products, the court said.
The court added that between July 2011 and January 2017, Wu instructed others to make up fake financial reports, disclose false information, conduct false capital replenishment, fabricate solvency levels and conceal premium income levels to deceive regulators and the public.
During that period, Wu transferred part of the company's premium income to more than 100 companies under his control to repay debt, make investments and inject capital to Anbang Insurance Group.
The court said Wu engaged in fraud worth more than 65.2 billion yuan and used his position to illegally embezzle 10 billion yuan of premium income from Anbang P&C.
As of May 9, US$1 was equivalent to 6.36 Chinese yuan.