Image copyright Reuters Image caption Wu Xiaohui was considered one of China's most politically connected men

The former head of China's embattled insurance and financial giant Anbang has been jailed for 18 years for corruption and fraud.

Wu Xiaohui admitted on state television in March to fraudulently raising billions of dollars from investors.

He will also have 10.5bn yuan ($1.7bn; £1.2bn) confiscated from him, according to Chinese state media.

Mr Wu was first detained in June last year. Chinese regulators took control of Anbang in February 2018.

Beijing, which has been cracking down on the financial industry in an attempt to guard against excessive borrowing and risk, had been concerned about Anbang's operations and had previously warned investors about the firm's wealth management products.

In an unusual move, regulators took control of the firm for one year over concerns it would not be able to meet its long-term financial obligations.

Regulators said at the time their actions were aimed at protecting the rights and interests of consumers and keeping the firm operating as usual.

Anbang is best known for its aggressive international acquisitions, including New York's Waldorf Astoria hotel.

Mr Wu, who founded Anbang in 2004, had long been considered one of the most politically connected men in China, having married the granddaughter of former leader Deng Xiaoping.

Anbang started out as a car insurance firm with state-owned backers, has been recognised as one of China's richest and most opaque conglomerates.

In addition to selling insurance products, it owns a portfolio of international properties and global brands.</s>The former chairman and CEO of China's Anbang Insurance Group, Wu Xiaohui, has been sentenced to 18 years in prison for fraud and embezzlement, Shanghai No.1 Intermediate People's Court said Thursday.

Wu was also denied his political rights for four years and 10.5 billion yuan (around $1.6 billion) worth of his assets were seized, according to the sentence.</s>(Reuters) - A Chinese court has sentenced Wu Xiaohui, former chairman of Anbang Insurance Group Co Ltd [ANBANG.UL], to 18 years in prison, China’s state media Xinhua news agency said on Thursday.

Citing the decision of the Shanghai No.1 Intermediate People’s Court, Xinhua said that 10.5 billion yuan ($1.65 billion) will also be confiscated from Wu Xiaohui.</s>SHANGHAI (AFP) - A Chinese court sentenced the former head of troubled Anbang Insurance Group to 18 years in prison on Thursday (May 10) for fraud and corruption, Xinhua news agency said, following accusations of stealing more than US$10 billion (S$13.5 billion).

Wu Xiaohui was toppled as Anbang's head last year and China's insurance regulator announced an unprecedented takeover of the conglomerate in February, as the government moves to prevent heavily-indebted large private companies from collapsing and posing a risk to the financial system.

Wu's trial was held on March 28 at a court in Shanghai, where prosecutors accused him of defrauding Anbang of 65 billion yuan (S$13.7 billion).

The funds were transferred to companies that Wu personally controlled for investment overseas, to pay down debts, or "personally squandered," the court had said.

The court also was told that Anbang had sold investment products that exceeded allowable fund-raising amounts by a whopping 723.9 billion yuan.

The government's swoop on Anbang marked its most aggressive step yet to rein in politically-connected conglomerates that grew rapidly and launched a wave of splashy multi-billion-dollar overseas investments fuelled by excessive debt.

The government of Chinese President Xi Jinping, who has dramatically strengthened his grip on power recently, has made cleaning up financial risks a top national priority.</s>A Chinese court has sentenced Wu Xiaohui, former chairman of Anbang Insurance Group Co Ltd , to 18 years in prison, China's state media Xinhua news agency said on Thursday.

REUTERS: A Chinese court has sentenced Wu Xiaohui, former chairman of Anbang Insurance Group Co Ltd , to 18 years in prison, China's state media Xinhua news agency said on Thursday.

Citing the decision of the Shanghai No.1 Intermediate People's Court, Xinhua said that 10.5 billion yuan (US$1.65 billion) will also be confiscated from Wu Xiaohui.</s>A court in Shanghai sentenced the founder of the Chinese insurance company that owns New York City’s Waldorf Hotel to 18 years in prison on Thursday after he pleaded guilty to fraudulently raising billions of dollars from investors, state media reported.

Shanghai’s No. 1 Intermediate People’s Court also ordered the confiscation of 10.5 billion yuan ($1.6 billion) in assets from Wu Xiaohui, the former chairman of Anbang Insurance Group.

Wu, who founded privately owned Anbang in 2004, has been accused of misleading investors and diverting money for his own use. He was detained last year and regulators seized control of Anbang in February. He was shown on state TV in March admitting guilt.

Wu initially had denied his guilt at his one-day trial, according to an earlier court statement.

According to Xinhua, Wu concealed his ownership of shares in companies controlled by Anbang, filed false statements with financial authorities and lured investors by offering rates of return above that offered elsewhere.

It said he used more than 100 companies under his control to manage funds and authorities later recovered bank savings, real estate and other assets. Wu used his position to misappropriate 10 billion yuan ($1.5 billion) in Anbang’s deposits, according to Xinhua’s lengthy report.

Xinhua said the court determined the length of the sentence according to the facts of the case, the severity of the crime, and its “degree of social harm.” It said more than 50 people were present at the sentencing, including Wu’s relatives and journalists.

Anbang last month said it was receiving a $9.6 billion bailout from a government-run fund. That would mean the government fund owns 98 percent of the company, wiping out most of the equity stake once held by Wu and other shareholders.

The company engaged in a global asset-buying spree, raising questions about its stability. Anbang discussed possibly investing in a Manhattan skyscraper owned by the family of U.S. President Donald Trump’s son-in-law and adviser, Jared Kushner. Those talks ended last year with no deal.

The negotiations with Kushner Cos. about 666 Fifth Ave. prompted members of the U.S. Congress to raise ethics concerns.

The Anbang case is one of a string of scandals in China’s insurance industry. The industry’s former top regulator was charged in September with taking bribes and other insurers have been accused of reckless speculation in stocks and real estate.</s>Wu Xiaohui, former chairman of Anbang Insurance Group Co., was sentenced to 18 years in prison after being convicted of fund-raising fraud and embezzlement, according to the official Xinhua News Agency.

The verdict from a Shanghai court also said Wu will be deprived of his political rights for four years, 10.5 billion yuan ($1.7 billion) of his assets will be confiscated, and any illegal gains will be retrieved, according to Xinhua.

The verdict seals the remarkable downfall of a dealmaker who was accused in March of masterminding a $10.2 billion fraud, as President Xi Jinping expands his anti-corruption campaign and a drive to curb financial risks.

Anbang gained global recognition in 2014 with the purchase of New York’s Waldorf Astoria hotel, and went on to snap up marquee assets around the world before landing in the cross hairs of the Chinese regulators last year. The government seized temporary control of Anbang in February, injected 60.8 billion yuan of capital to bolster its solvency in April and has been seeking new investors for the 2 trillion yuan conglomerate.

Wu used unauthorized sales of investment-type insurance products to inflate the company’s capital, the court said in March as Wu stood trial. Proceeds from sales of such short-term, high-yield products also powered Anbang’s rapid growth over the past few years and its acquisitions spanning from insurers and banks in Europe and Asia to real estate assets around the globe.</s>Beijing: A top Chinese insurance executive, who had dined with Donald Trump's son-in-law Jared Kushner over a New York property deal, has been sentenced to 18 years in prison for embezzlement.

Anbang Insurance chairman Wu Xiaohui had assets of $US1.65 billion ($2.2 billion) confiscated after a Shanghai court found he had defrauded China's second-largest insurance company of 65.2 billion Chinese yuan ($13 billion), and illegally misappropriated 10 billion yuan in insurance premiums.

The company was put under the direction of Chinese regulators in February after they cited risk to millions of policy-holding consumers.The Chinese government injected 60 billion yuan into Anbang in April to keep it solvent.

Wu was detained in June 2017 . It was a hard fall for a high-profile billionaire who had embarked on a $US16 billion overseas buying spree over 18 months, scooping up trophy assets such as the Waldorf Astoria hotel in New York and the Starwood Hotels group.

The company came to Australia looking for deals in 2016, but was reportedly beaten in a bid for a healthcare company.</s>
• Wu Xiaohui, former chairman of Anbang Insurance Group, has been sentenced to 18 years in prison for fundraising fraud and embezzlement.
• Anbang was founded in 2004 and bought the famed Waldorf Astoria Hotel in New York City. It also has significant stakes in Chinese banks and property developers.

Wu Xiaohui, former chairman of Anbang Insurance group, has been sentenced to 18 years in prison for fundraising fraud and embezzlement, state-run China Daily reported.

Wu, 51, founded private insurer Anbang in 2004, and in 2014, bought the famed Waldorf Astoria Hotel in New York City. It also has significant stakes in Chinese banks and property developers.

Wu stood trial at the Shanghai No. 1 Intermediate People’s Court in March and admitted at the time that he played a role in a fundraising scheme that brought in more than 723 billion yuan ($115.2 billion) from unlawful dealings. He initially contested charges against him but later asked for leniency.

He has also been accused of misleading investors and diverting 65.25 billion yuan ($10.4 billion) to companies that he controlled, and funneled funds into overseas investment and personal spending.

Regulators seized control of Anbang in February. The company boasted of extensive ties to China’s Communist Party, and Wu himself is married to the granddaughter of Deng Xiaoping, China’s former paramount leader.

Wu had links to US presidential adviser Jared Kushner, the son-in-law of President Donald Trump, and reportedly met with Wu in November 2016, shortly after Trump won the election.

Both Kushner and Wu are real-estate investors, and Kushner’s family business, Kushner Companies, were in talks on a $4 billion deal with Anbang last March. However, the deal fell through shortly after news broke following scrutiny from US lawmakers.

Special counsel Robert Mueller is reportedly investigating contact between Kushner and foreign investors during the transition period, specifically looking at Kushner’s interactions with Anbang.</s>Anbang's Former Chairman Sentenced to Jail for Fraud

Wu Xiaohui, the former head of China's Anbang Insurance Group, has been sentenced to 18 years in jail for masterminding a $10.2 billion fraud https://bloom.bg/2IaLi48 #tictocnews (Source: Bloomberg)
Wu Xiaohui, head of Chinese insurance firm Anbang, is jailed for eighteen years for fraud and corruption. He is further sentenced to have 10.5 billion yuan confiscated.