China court rejects Anbang's jailed ex-chairman appeal

A Chinese court has rejected an appeal by Anbang Insurance Group’s former chairman Wu Xiaohui against a conviction for fundraising fraud and embezzlement that led to an 18-year jail sentence and confiscation of ¥10.5 billion ($1.52 billion), according to an Aug. 16 Reuters report.

“The evidence was solid and sufficient. The conviction was accurate. The sentencing was appropriate,” the Shanghai High People’s Court reportedly said in a statement posted online on Thursday, Aug. 16.

Wu has been found guilty of fraud and embezzlement and sentenced to 18 years in prison earlier in May. The Shanghai No.1 Intermediate People’s Court saw Wu guilty of issuing false disclosures to regulators and diverting insurance premiums for his personal use. The court also confiscated 10.5 billion yuan ($1.65 billion) in assets.

Wu reportedly denied the charges against him on the first day of his trial but later shifted tone as he asked the court for leniency.

Wu led the insurer as it became one of China’s most aggressive dealmakers with a series of major overseas acquisitions.

In February 2018, the Chinese government seized control of Anbang in an attempt to curtail big-spending conglomerates as it cracked down on financial risk.

Later in April, the China Banking Insurance Regulatory Commission approved a plan to inject ¥60.804 billion ($9.65 billion) of capital into the company while seeking new investors.

In June 2018 the Chinese government took full ownership of Anbang as the China Banking and Insurance Regulatory Commission approved the transfer of 98.23 percent of Anbang to China Insurance Security Fund.

In July it was rumoured that Anbang was exploring the sale of Belgian insurer Fidea, which would be the first European divestment by the troubled Chinese group since it was seized by the government.

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