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China court sentences Anbang chairman to 18 years in prison for fraud

[JURIST] Chinese tycoon Wu Xiaohui was sentenced [statement, in Chinese] by the Shanghai No. 1 Intermediate People's Court to 18 years in prison after he plead guilty to charges of fraud and embezzlement. A large portion of his property will also be confiscated.

Wu was convicted of embezzling [NYT report] more than $10 billion from those who invested in the insurance company he founded, Anbang [corporate website], through illegal fundraising. Anbang, which started as a small car insurance company, drew recent attention [CNN report] for its global pursuits of high-profile real estate, including New York's Waldorf Astoria hotel [corporate website].

Anbang's risky moves attracted the scrutiny of the Chinese financial authorities, which seized control [NYT report] of the company in February. Charges were subsequently brought against Wu. Last month, the Chinese government channeled over USD $9 billion into Anbang in an effort to protect its customers from excessive losses following Wu's fallout.

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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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