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)
