Chinese banker who embezzled US$108 million handed suspended death sentence
- Jiang Xiyun, the former chairman of Hengfeng Bank, also took US$8.6 million in bribes and illegally guaranteed 3.7 billion yuan in credit
- He destroyed accounts and records relating to US$94 million, according to the court ruling
A court in eastern China has handed down a suspended death sentence to a corrupt former chairman of a troubled regional lender, indicating Beijing’s determination to clamp down on banking risks.
According to a court ruling published on Thursday, Jiang embezzled 754 million yuan (US$108 million) of the bank’s shares; took 60 million yuan (US$8.6 million) in bribes; illegally guaranteed 3.7 billion yuan (US$528 million) in credit; and destroyed accounts and records relating to 660 million yuan (US$94 million).
Suspended death sentences are usually commuted to life in prison in return for good behaviour during the reprieve period. However, Jiang, 70, is unlikely to leave prison, with the court saying he would not be granted any further reduction in jail term or parole if the sentence was commuted.
The ruling shed fresh light on the lender’s operations under Jiang and his successor Cai Guohua as Hengfeng ended 2019 as one of the most spectacular bank failures in China.