A court in China sentenced the former chairman of Hengfeng bank, Cai Guohua, to death with two-year reprieve after convicting him of corruption, embezzlement, bribery and abuse of power. Reuters reports.
The Dongying City Intermediate People’s Court of Shandong Province said in a statement that Cai took advantage of his position to «illegally take over bank property to his advantage».
Chinese media outlets described Cai as one of the most corrupt bankers in history, claiming that he illegally obtained more than $ 1,5 billion.
If Cai commits no further crime over the next two years, his sentence will be commuted to life imprisonment, the court ruling said.
Last year, his predecessor, Jiang Yunxi, was also convicted of corruption and sentenced to death with two-year reprieve.
Hengfeng Bank, located in Shandong province, has been undergoing a restructuring since 2017 after revealing a financial cover-up for two consecutive years. As a result, the China Banking and Insurance Regulatory Commission (CBIRC) appointed its employees to lead the bank due to management and liquidity issues.
In January, the bank received $ 15 billion in strategic investments through a sale of shares to state and foreign investors.