A woman walks by a map showing Evergrande development projects in China, as she heads to an Evergrande city plaza in Beijing on Sept. 18, 2023. (AP file photo)
The Shenzhen Intermediate People’s Court sentenced Hui Ka Yan, the founder of China’s Evergrande real estate group, to life in prison on Aug. 20 for large-scale fraud.
It also fined Evergrande Group 8.82 billion yuan ($1.31 billion) and Evergrande Real Estate 7 billion yuan ($1.04 billion), according to a statement issued by the court.
Hui Ka Yan, also known as Xu Jiayin, pleaded guilty in April to a series of charges, including illegal absorption of public deposits, fraud and corporate bribery.
Between 2016 and 2021, Evergrande and Xu as boss “violated national laws by engaging in continuous,
large-scale financial fraud and other means to inflate assets and conceal liabilities”, the court said.
Five other senior executives of Evergrande Group were also sentenced on Aug. 20 to prison terms ranging from six to 18 years for crimes including fraud, the Shenzhen court said.
Evergrande was the world’s most heavily indebted real estate developer with more than $300 billion in liabilities before it was ordered to liquidate.
Its downfall, which came as Chinese government officials cracked down on excessive borrowing in 2020, tipped the entire Chinese real estate market into crisis.
