Shanghai tycoon gets 3-year sentence
Shanghai property tycoon Zhou Zhengyi was sentenced to three years in prison Tuesday by the Shanghai Number One Intermediate People's Court for stock market fraud and falsifying documents, sources with the Supreme People's Court said.
Zhou, a Shanghai native, made his millions running restaurants and retail outlets before moving into property development. In 2002, Forbes magazine ranked him China’s 11th-richest man, with a fortune estimated at US$320 million.
Zhou was sentenced to two years and six months in prison for manipulating share prices and one year for falsifying registered capital reports. He was totally sentenced to three years in prison, according to the verdict of the Shanghai Number One Intermediate People's Court.
Shanghai-based Nongkai Development Group, dominated by Zhou, was sentenced to pay a total fine of 40 million yuan (US$4.82 million), including 33 million yuan (US$3.96 million) for manipulating share prices and seven million yuan (US$0.84 million) for falsifying registered capital reports, according to the verdict.
The tycoon is also being sued by 2,000 residents of a Shanghai neighborhood who say he failed to compensate them adequately for demolishing their homes as part of a redevelopment project.
The other two defendants in the case were also convicted, the sources said.
The trial took place at the Shanghai Number One Intermediate People's Court on May 19-20.