Chen Yifeng, a Shenzhen entrepreneur, beloved by the poor and needy in his hometown of Luoding in western Guangdong, has been accused of illegally amassing a fortune of about 160 million yuan (US$19.3 million) over a period of 11 years.

It is alleged that one of his moneymaking schemes included subletting market stalls that belonged to the government. He is said to have done this in several major markets in the city.

He also built on government land, without approval, and collected money from tenants.

The case, also involving the largest criminal organization on the Chinese mainland, was heard for the first time Tuesday in Luohu District Court in Shenzhen.

Chen was formerly a member of the Guangdong Provincial Political Consultative Conference, a consultative body to local government.

According to the indictment, he and 24 other key members of the "mafia" are also accused of taking property by force, confronting policemen, attacking local residents and harboring criminals.

Before Chen was brought into custody in April 2004, he was well known for his generous financial contributions to the poor. Since 1995, he has given significant financial aid to poor people in his hometown of Luoding in western Guangdong.

However, it is alleged that Chen conducted his businesses in a less glamorous way.

Starting as a construction and drainage worker in Shenzhen, Chen started a small company in 1993 and opened a construction materials market a year later.

In the decade that followed, it is alleged, Chen and his team expanded the business by force. They are said to have used axes, iron rods and fire extinguishers to beat rivals in local markets and shopping centers in the downtown area.

According to the indictment, Chen's "mafia" consisted of hundreds of "security guards" who allegedly beat and injured some 300 local residents and five policemen.

The hearing continues.

(China Daily May 18, 2005)