Three corporate executives and a securities clerk were given prison terms ranging from three to ten years for fraud and embezzlement at Yunnan Provincial Higher People's Court Friday.
Zhao Zhiguo, former chairman of Zunrong Group Co., Ltd. based in Shenzhen City, Guangdong Province, was sentenced to 10 years in prison. Lu Youzhen, former chairman and general manager of Yuntong Enterprises Group Co., Ltd. of Shenzhen City, would be jailed for seven years.
Luo Jiang, former general manager and legal representative of International Economy and Technology Industrial Company of Hainan Province, was sentenced to five years in jail, while Lu Wei, former head of Shenzhen operations with Yunnan Provincial Securities Company, was given three years in prison.
Friday's ruling was final.
The court heard that on May 8, 1992, Saige Garden Industry Construction Co., Ltd. of Dongguan City, Guangdong Province, was launched by six companies with a total investment of 29.58 millionUS dollars, including Luo Jiang's company and a Hong Kong company.Zhao Zhiguo was appointed chairman of the new company, while Lu Youzhen was general manager.
Zhao and Lu collaborated with Luo Jiang in illegally appropriating 80 million yuan of capital belonging to Yunnan Provincial Securities Company by forging facts or hiding truth under the cloak of an economic contract signed between Luo Jiang's company and Yunnan Provincial Securities.
Ten million yuan of the money, with a power of attorney given by Luo Jiang's company, had vanished since it was successfully funneled into an account in Beijing.
While operating by contract the Yunnan Provincial Securities Company's business in Shenzhen, Lu Wei and Zhao Zhiguo also violated state laws and contractual obligations and embezzled at least 129 million yuan of the Yunnan Provincial Securities' money for Zunrong Group and Yuntong Group.
(Xinhua News Agency December 19, 2003)
