Chinese insurer Anbang’s former boss jailed for 18 years
Former high-flying executive Wu Xiaohui defrauded the conglomerate of more than $10bn, leading to an unprecedented takeover by the Chinese state
Shanghai — A Chinese court jailed the former high-flying head of troubled Anbang Insurance Group for 18 years on Thursday for defrauding the company of more than $10bn. Wu Xiaohui was toppled as Anbang’s head last year and China’s insurance regulator announced an unprecedented takeover of the conglomerate in February, as the government moves to prevent heavily indebted large private companies from collapsing and posing a risk to the financial system. Established in 2004, Anbang grew rapidly into a financial-services powerhouse, making waves in 2014 by buying New York’s landmark Waldorf Astoria hotel for $1.95bn and other acquisitions. In addition to the prison sentence, the Shanghai Municipal No 1 Intermediate People’s Court announced that it had ordered the seizure of 10.5-billion yuan ($1.6bn) worth of his property and the suspension of his political rights for four years. The court found him guilty of defrauding Anbang of more than 65-billion yuan following a trial in March. Debt...
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