Ringleaders Behind Kuailu's USD6.4 Billion Illegal Fundraising Get Life Sentences
Zhang Yushuo
DATE:  Jan 17 2019
/ SOURCE:  yicai
Ringleaders Behind Kuailu's USD6.4 Billion Illegal Fundraising Get Life Sentences Ringleaders Behind Kuailu's USD6.4 Billion Illegal Fundraising Get Life Sentences

(Yicai Global) Jan. 17 -- A Shanghai court has dished out life sentences to the two perpetrators that led Kuailu Investment Group's fraudulent efforts to raise CNY43.4 billion (USD6.4 billion) in funds.

Huang Jialiu and Wei Yanping will both serve life in prison and their 13 accomplices will serve sentences of between nine and 13 years for fraud, illegal absorption of public savings and fraudulent fundraising, Shanghai No. 1 Intermediate People's Court said yesterday after the sentencing.

Kuailu received a fine of CNY1.5 billion (USD222 million) and accomplice companies East Hongqiao Small-Sum Credit and East Hongqiao Finance Guarantee were hit with CNY200 million fines each for the crime of fraudulent fundraising.

The three companies promoted and sold various wealth management products to the public via promotional meetings, flyers, internet advertisements, cold calls and sponsored performances on and offline, all without regulatory permission. They caused CNY15.2 billion worth of actual economic losses and inflicted mental harm on nearly 40,000 victims, the court ruled.

Editor: James Boynton

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Keywords:   Kuailu