The Shanghai No 1 Intermediate People’s Court has sentenced Xiao Jianhua, the founder of Tomorrow Group, to 13 years in prison, and slapped him with a fine of RMB55bn (USD8.1bn). The Canadian-Chinese tycoon was found guilty of illegally collecting public deposits, using entrusted assets in breach of trust, illegally using funds, and bribery. Xiao was also personally fined RMB6.5m. The Shanghai court in its ruling said Tomorrow Group and Xiao’s criminal acts severely damaged the financial management order, which severely risked national financial safety, and severely encroached on the professional integrity of public servants. Tomorrow Group and Xiao illegally used client funds and entrusted assets of RMB148.6bn via Baoshang Bank. The bank was taken over by the government in May 2019 and was placed into bankruptcy a year later.
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