One-time Forbes list billionaire on trial in Beijing

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A one-time Forbes list billionaire entrepreneur went on trial Sunday in Beijing on charges of corruption, bribery and evading about 200 million yuan ($30 million) in taxes, the Beijing News reported Sunday.

Wang Fusheng, 51, the founder of Xinfu Investment Ltd Co, grew into one of the largest private investment groups in the country.

In 2007, the Forbes annual ranking of China's wealthiest individuals identified Wang as No. 351 with 2.42 billion yuan ($360 million) worth of assets. It was his first time on that list.

However, it was also the same year that police arrested Wang for tax evasion. They acted on a tip from an insider, the China News Service (CNS) reported.

Wang's case was heard in the Beijing Second Intermediate People's Court. Wang's son said that Xinfu Company has paid the overdue taxes in question.

The prosecutors pointed out that during the two projects, Fuhua Building and Meihui Building, Wang failed to pay 160 million yuan ($24 million) and 25 million yuan ($3.7 million) in taxes by making false contracts with foreign companies.

Prosecutors also accused Wang of bribing two officials at the Second Tax Office under Beijing Local Taxation Bureau. He allegedly paid them 500,000 ($75,000) so that they would approve the falsified Xinfu accounts. The prosecutors said that Wang is also guilty of embezzling company funds.

Wang denied all three accusations and argued that he is not a public official and therefore should not be accused of corruption in the first place.

According to the CNS, Wang bribed the then deputy director of Beijing Local Taxation Bureau, Zhu Fengzhen, by giving him 1 million ($149,909) yuan in 2004 to avoid the overdue fines. Zhu was given a 13-year prison sentence.