The former chairman of a major Chinese refrigerator maker was
sentenced to ten years in jail on Wednesday for fraud and
embezzlement of millions of dollars.
Gu Chujun, former chairman of Guangdong Kelon Electrical
Holdings Co. Ltd, was found guilty of falsely registering the
capital of Greencool Enterprise Development Company, which he set
up in 2001; publishing falsified financial reports for the listed
Kelon; and embezzling with others 313 million yuan (43.5 million
U.S. dollars) from Kelon and two other companies.
The Foshan Intermediate People's Court heard Gu had falsely
included 660 million yuan of cash funds in Greencool's registered
capital. Greencool was originally registered with a capital of 1.2
billion yuan.
Gu was also fined 6.8 million yuan (940,000 U.S. dollars).
Relatives and his lawyer said he would appeal the verdict.
Seven others involved in the crimes received sentences ranging
from one to four years.
(Xinhua News Agency January 30, 2008)
