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CHINESE TYCOON SENTENCED TO DEATH FOR PONZI-SCHEME |
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A Chinese high court recently upheld a death sentence of Wu Ying, a 31 year old tycoon accused of running a 380 million yuan ($60 million) Ponzi-scheme. Once ranked as China's 6th richest woman, Wu Ying was found guilty of what is technically known as "fraudulent fundraising" for Behnse Holding Group which she headed. Wu Ying allegedly collected 770 million yuan from investors with promises of 80% returns. The capital was supposed to have been invested in trading companies, hotels and real estate developments but instead she used it to pay off debts on her personal assets, including cars and personal real estate holdings. In her defense, Wu Ying's lawyers claims that the funds were provided her personal friends and not the general public. The public has also complained that Wu Ying's true crime is not in bilking the public but in implicating corrupt government officials during the investigation. The public has also claimed a double standard in how government officials are treated under the law versus average citizens and that she is being used as a scapegoat. According to the Wall Street Journal, "At the heart of the issue is a feature of China's death penalty system that allows for sentences to be reduced to life in prison if convicts go two years without committing another crime. Nearly three quarters of officials condemned to die get their sentences reduced, compared to just 20 to 30 percent of ordinary prisoners" (http://on.wsj.com/wzyoIg).
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