Illegal fund raising, contract fraud, bribery, tax evasion, loan
fraud and mayhem posed the six major forms of crimes that toppled
China's wealthy private business owners in 2007.
Before their fall, some even had renowned political and social
status as deputies to the National People's Congress (NPC), and the
Chinese People's Political Consultative Conference (CPPCC). Others
were celebrated charitarians, reported China Youth Daily on
Wu Ying, a 26-year-old woman, who chaired the board of Bense
Trade Co. Ltd in Zhejiang Province, was arrested for illegal fund
raising and owing her employees back pay last February, the
She reportedly amassed a fortune of 3.8 billion yuan (about 506
million U.S. dollars), according to the Guangdong-based newspaper
Shenzhen Daily. The newspaper ranked her the sixth-richest
woman in the Chinese mainland in early 2007.
Wu had made a series of donations to her alma mater and other
charities before the police investigated her and unveiled her
"Chinese entrepreneurs should be educated to raise their law
awareness," said a commentary in the newspaper running along with
fallen tycoons article.
"They also need to know they are not supposed to push the moral
boundaries to the extent of violating the law. It is better if they
follow the basic moral standards at the very beginning."
Other cases revealed being too greedy and self-willed also
contributed to the downfall of those business people.
The former chairman of the Shenzhen-listed Jiaozuo Xin'an
Science and Technology, Xie Guosheng, was jailed on fraud charges
in July. He was previously No. 348 on Forbes' China 2005
rich list with an estimated 550 million yuan.
Shanghai tycoon Zhou Zhengyi was arrested for bribery and
forging VAT receipts last January, just a few months after
completing a three-year imprisonment for fraud and stock
Zhou, No. 11 on the Forbes list of 100 richest
mainlanders in 2002, was the majority shareholder of the Hong
Kong-listed Shanghai Land Holdings and Shanghai Merchants
The list goes on.
Li Yichao, former boss of Luoyang Zhongtai Group of Henan
Province, was detained for suspected tax evasion in February. He
was also expelled from the NPC. In 2006, he was ranked No. 342 by
Forbes with an estimated 880 million yuan.
Reputed to be the richest person in Henan Province, native son
Sun Shuhua, the former head of the Hualin Group, was put under
investigation for suspected loan fraud in May. He ranked No. 138 on
the Forbes list in 2004 and was also a delegate to the local
committee of the NPC and vice-chairman of the CPPCC committee of
Zhou Group Chairman Zhou Xiaodi was arrested for mayhem last
December, a day after he was stripped of his Shanghai CPPCC
committee membership. He ranked 31st on Hu Run's list of China
charitarians with donations of 24.90 million yuan in 2006.
"An outstanding entrepreneur should have a healthy personal
belief that accords with the society's mainstream moral
obligations," said the commentary. It added they should be advised
not to follow a "violent growth" mode, through which they would
take all kinds of risks to make profits.
The government should also take new approaches to manage
enterprises and work out ways to prevent crime and corruption,
suggested the commentary.
During the past year, government officials were brought to the
front line by the Communist Party's watchdog in its battle against
corruption. By June, a total of 24,879 cases had been investigated,
with concerned bribes totaling more than 6.156 billion yuan.
Government employees were involved in 5,523 bribe cases,
accounting for 22.2 percent of those caught, according to China
Also last year, eight high officials were sacked and expelled
from the Party, and would face criminal charges. These included
Chen Liangyu, Shanghai's former Communist Party chief, and Pang
Jiayu, vice chairman of the Shaanxi provincial committee of the
(Xinhua News Agency January 8, 2008)