Chinese insurance mogul being tried on financial charges as the owner of New York City’s Waldorf Hotel went on trial on accusation that he deceitfully raised $10 billion from investors and mishandled his stature to enhance himself.
Wu Xiaohui, chairman of Anbang Insurance Group, was arrested last year. Managers captivated the privately headed Anbang succeeding a multibillion dollar worldwide purchasing spree that precipitated questions about its financial solidity.
The case appended to a plethora of scandals for Chinese insurer. The industry’s previous chief manager was accused of taking bribes. Managements of other insurers have been accused of corruption and mismanagement.
Beijing declared plans on March 13 to amalgamate the Chinese banking and insurance regulators so the scrutiny of these rapidly evolving industries would also step up. The reigning communist party has made decreasing financial risk a concern after a debt owed by Chinese companies and local governments induced by rating agencies last year to reduce Beijing’s credit ratings for government hiring.
According to a report by prosecutors on the social media account of the Shanghai No. 1 Intermediate People’s Court, Wu has been accused of deceitfully elevating 65 billion yuan ($10 billion) and misusing his post to redirect money for his personal use.
In court, Wu’s lawyer debated that he was guilty of violating the rules but not illegal. Another post said that Wu condemned that he did not comprehend the law and therefore is oblivious of the fact that what he did was illegal.