A Chinese-Canadian firm was fined 55.03bn yuan for illegally taking funds from the public and imprisoned in China for 13 years.
Shanghai prosecutors said that Xiao Jianhua and his company Tomorrow Holdings got charged with embezzlement and bribery.
Nothing had received no official word from him until the Canadian embassy announced in July that he would face trial.
A trail was said to have formed on 4 July.
The court found him and his firm guilty of “illegally absorbing public deposits, breaching trust in the use of entrusted property… [and] illegal use of funds,” the Shanghai court said. It also said Tomorrow Holdings was guilty of the “crime of bribery.”
Xiao and his firm had also “severely violated the financial management order” and “hurt state financial security.”
From 2001 to 2021, the court found that Xiao and Tomorrow transferred shares, real estate, cash, and other property to government officials worth more than 680m yuan. This was to evade financial supervision and seek illegal interests.
Xiao was born in 1972 in Feicheng, Shandong, China. he attended Peking University at age 14 on a scholarship and is known to have connections to the country’s Communist party elite. However, since the 2017 incident got investigated, he has not seen it publicly.
There had been a restructuring of his business empire since his disappearance. Then, in July 2020, Chinese controllers shut down nine of the group’s related institutions to cut down on risks posed by financial empires. A few months later, state-owned asset firm China Chengtong Holdings Group said it would acquire a majority stake in a shields firm attached to Tomorrow Group.
However, news of Xiao’s fate did not surface until this year. Last month he was finally put on trial, more than five years after the alleged abduction.