Beijing court jails Zhongzhi Enterprise's former chairman for illegally taking public funds

A court in Beijing has sentenced a former chairman of Zhongzhi Enterprise Group and several others to prison terms ranging from four-and-a-half to 14 years for illegally taking public deposits, Chinese state broadcaster CCTV reported on Tuesday.

The report identified the former chairman of the Chinese wealth management firm only by his surname, Gao. The executives were also fined, CCTV said, though the amounts were not disclosed.

The court found Gao and the other defendants had breached national financial management laws and disrupted financial order, according to the report.

Zhongzhi did not immediately respond to a Reuters request for comment.

Zhongzhi, which had sizeable exposure to China's property sector, filed for bankruptcy in January 2024 as it grappled with a deepening downturn in the real estate market.

Police have been working to recover funds involved in the case, the report said. 

Reuters