Ex-insurance chief jailed six years for 200m yuan theft
A former chairman of New China Life Insurance, one of the mainland's biggest insurers, was jailed for six years by the Beijing's No 2 Intermediate People's Court on Thursday for embezzling 200 million yuan, the Beijing Evening News reported.
The court found Guan Guoliang, 51, guilty of taking advantage of his position to unlawfully misappropriate 200 million yuan (HK$246 million) in company funds in 2004 to support a private investment company run by his brother, Guan Guoxing.
Guan Guoliang was arrested in 2007 for alleged misuse of almost 13 billion yuan while the company's chairman between 1998 and 2006. But when he went on trial in November 2008, the authorities only charged him with misappropriating three million yuan and embezzling 261 million yuan.
The embezzled funds were said to have flowed into the pockets of 'interested partners' to help them become controlling shareholders of New China Life, which was established by Guan Guoliang in 1996.
In September 2006, the China Insurance Regulatory Commission sent an investigation team to New China Life and found the problem.
It fired Guan Guoliang as the company's chairman in December 2006. An insurance protection fund invested in the company in May 2007, acquiring about 38 per cent of the company's shares.