The Pendleton Panther

Former Richest Man in China Sentenced to 14 Years in Prison

Posted on: May 19, 2010

Huang Guangyu

Huang Guangyu, who once was the richest man in China, has been officially sentenced to spend 14 years in federal prison. He has been charged with stock-market manipulation, bribery and insider trading. Huang is the CEO and head of Gome, which is China’s largest retail chain, similar to that of a Home Depot in the United States. The government fined him 600 million yuan, equivalent to 87.8 million USD, and confiscated private property totaling 200 million yuan (29.2 million USD). According to CNN, “Huang ranked first on Hurun’s China Rich List, a local publication, in 2008 with an estimated fortune worth $6.3 billion. Such a top ranking is usually not celebrated in China because of the scrutiny it brings. Huang typically kept a low profile despite his wealth and influence.” He also appeared on the cover of Forbes magazine, where it touted his amazing rags to riches life story. He was born to a very poor family in the Guangdong Province. As a teen, he set off on his own and set up a small electronic appliance business. A few years later, he set up Gome Electrical Appliances Holding and raked in a treasure trove of income. The recurring theme among many executives is the bribery and insider crimes they commit. It is just a matter of who gets caught doing it that gets out into the media.

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