The Liaoning Provincial Higher People's Court on Monday made a
final judgment to uphold the death penalty for a principal in a
bogus ant-breeding project that raised 3 billion yuan (US$417
million) from investors.
Last February, Wang Zhendong, board chairman of Yingkou Donghua
Trading (Group) Co., Ltd. in northeastern Liaoning Province, was
sentenced to death while 15 company managers were given jail
sentences of between five and 10 years by the Yingkou Intermediate
People's Court.
However, Wang and the managers appealed to the provincial high
court after the first instance.
Wang promised returns of 35 to 60 percent for the fictitious
project under the name of Donghua Zoology Culturing Co., Ltd and
Donghua Spirit Co., Ltd. between 2002 and 2005.
The ants were to be used for making liquor, herbal remedies and
as aphrodisiacs.
More than 10,000 investors signed contracts with the company
before the case was investigated in June 2005.
Wang, however, continued to swindle investors who visited the
company and told them the business was doing very well. He misused
798 million yuan raised from investors, buying himself luxury goods
and lending money to others.
One investor committed suicide after realizing he had been
duped, the Yingkou court heard. Wang's actions also caused huge
economic losses for investors and many subsequently suffered
depression, the court said.
All of Wang's property was confiscated, while the managers
received fines ranging from 100,000 yuan to 500,000 yuan.
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(Xinhua News Agency February 4, 2008)