The former chairman of Hengfeng Bank – Jiang Xiyun has been sentenced to death by a Chinese court for making illegal gains of over $100 million. The bank was founded in 1987 as a pioneering home savings bank and became a joint-stock bank with a business license to operate nationwide in 2003.
According to Yantai Intermediate People’s Court, Jiang Xiyun moved 754 million yuan ($108 million) worth of Hangfeng shares to his personal account between 2008 and 2013. He also found guilty of taking bribes of more than 60 million yuan together with another bank executive, illegally guaranteeing CNY 3.7 billion in credit to affiliates without charging the related fees, and ordering the illegal destruction of accounting records for over CNY 660 million worth of transactions.
Jiang Xiyun’s Hengfeng stock and related interests will be returned to the bank, whereas his personal property will be confiscated by the government.
The death sentences are likely changed to life in prison based on the behavior during the reprieve period. However, 70-year-old Jiang Xiyun would not be granted any further reduction in jail term or parole if the sentence was commuted.
Source – Regulation Asia