Evergrande founder Hui Ka Yan sentenced to life for large-scale financial fraud
An Intermediate People's Court in Shenzhen handed a life term to the Evergrande founder and fined the company more than $2 billion after finding systematic fraud between 2016 and 2021.
Hui Ka Yan, founder of the property developer Evergrande, was sentenced to life imprisonment after a court found him guilty of large-scale financial fraud and related crimes.
The Intermediate People's Court in Shenzhen also ordered the company to pay more than two billion dollars and said the offences were part of a sustained scheme that stretched from 2016 to 2021.
Court findings and penalties
The court concluded that Evergrande and Hui illegally inflated property values and concealed liabilities through continuous financial deception between 2016 and 2021. Judges said those actions seriously disrupted the economic order and caused substantial economic losses and social harm.
The ruling stated that the defendants used bribery to "gain control over financial institutions," though the court did not name the individuals or institutions involved.
Hui, 67, pleaded guilty in April to charges that included embezzlement and bribery. He was once among the wealthiest people in China and served on a top political advisory body of the Communist Party.
The verdict has drawn intense attention because it comes amid a broader crisis in China’s property sector. Observers are watching the financial health of other major developers such as Country Garden and Vanke, while prices for new apartments in China have been falling for about three years.
In addition to Hui’s sentence, five senior Evergrande executives received prison terms ranging from six to 18 years for criminal offences including fraud. A total of 56 people were handed prison sentences, among them Hui’s two sons; the shortest term imposed was one year and ten months. The court also ordered the recovery of remaining funds obtained through illegal gains.
Photo: Chengdu Business Daily
