According to Cui, Liu Huzi gave each team member a 2,000 yuan ($321.62) stipend and they earned extra money by selling the doors and windows of the houses slated for demolition.
After the case was made public, Cui turned himself in.
"I've never used my illness to blackmail or threaten anyone before, and I deeply regret [allowing myself] to be used in this way."
An official with the Nanyang government said one of the companies involved in its demolition scheme had been shut down and it would be the subject of an investigation.
The photo of a piece of red graffiti, allegedly taken in a community slated for demolition, which read "AIDS demolition team", was first posted on microblogging Weibo by media in Yunnan Province. It caused public outcry and quickly went viral.