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This Economist article paints a very different picture from the article below: http://www.chinadaily.com.cn/china/2009-12/18/content_920158... Businesswoman gets death sentence for defrauding investors out of tens of millions of dollars vs. Businesswoman gets death sentence for fundraising
This Economist article paints a very different picture from the article below: http://www.chinadaily.com.cn/china/2009-12/18/content_920158... Businesswoman gets death sentence for defrauding investors out of tens of millions of dollars vs. Businesswoman gets death sentence for fundraising
Well, we know which of the two publications has prepublication review of content by the Communist Party of China.
Is it even possible, concerning the usual secrecy of similar processes?
This Economist article paints a very different picture from the article below: http://www.chinadaily.com.cn/china/2009-12/18/content_920158... Businesswoman gets death sentence for defrauding investors out of tens of millions of dollars vs. Businesswoman gets death sentence for fundraising
This Economist article paints a very different picture from the article below: http://www.chinadaily.com.cn/china/2009-12/18/content_920158... Businesswoman gets death sentence for defrauding investors out of tens of millions of dollars vs. Businesswoman gets death sentence for fundraising
I can't say how accurate/objective it is, but based on the discussions on TV and on the Internet, it seems to be fair, and most importantly, very detailed.
Does this mean angel investing is illegal in China. I am not sure what "raising and pooling money outside the official system" really means.
The comparable scale of punishment is another story; on the other hand a few people would wish Madoff was tried in a Chinese court for defaulting people.
This Economist article paints a very different picture from the article below: http://www.chinadaily.com.cn/china/2009-12/18/content_920158... Businesswoman gets death sentence for defrauding investors out of tens of millions of dollars vs. Businesswoman gets death sentence for fundraising
Well, we know which of the two publications has prepublication review of content by the Communist Party of China.
The Chinese source states: "The money was used for Wu's personal consumption and in paying back the loans and operation costs of her company, said the court."
Now this is a quote from the court which is something that should have been available to the Economist. Nevertheless the Economist made it sound that she was only persecuted for accepting financing from unofficial sources, not that she was doing anything improper with the financing.
A death sentence for running a ponzi scheme sounds like a bit much (but then again I am against most death sentences) but it is a lot less unjust than a death sentence for only accepting financing from unofficial sources, which is what the Economist makes it sound like.
Earlier quoted context omitted.
Well, we know which of the two publications has prepublication review of content by the Communist Party of China.
You make it sound like the Chinese source is not to be trusted, and you may be right. But this story shows that the Economist is just as trustworthy as any Chinese communist sources (i.e., not very trustworthy). The Chinese source states: "The money was used for Wu's personal consumption and in paying back the loans and operation costs of her company, said the court." Now this is a quote from the court which is somet…
I can't agree with that. I read only the Economist article before coming to the comments here, and I managed to figure out that she was being charged with active fraud. I figured it out from things like mentioning a promise of an 80% return on investment, or possibly lending out money she received at usurious interest rates.
I think you may be missing the point of the last paragraph, which is that the plea bargain is to plead guilty to the crime of raising funds in the way Chinese entrepreneurs have been doing, not that she actually did it. She didn't, which why it's a plea bargain, but it's concerning that what she bargained to is a death-penalty crime, apparently.
To be fair, this article seems to be a little shorter than it should be; it requires closer reading than it should. And I'd also point out that she still appears to be getting the death penalty for that charge, which is worth reacting to.
Does this mean angel investing is illegal in China. I am not sure what "raising and pooling money outside the official system" really means.
That's a good question. That seems like important context. What does the "official system" consist of, exactly, and why do so many entrepreneurs apparently raise funds outside of it?
So many "entrepreneurs" raising funds outside of the rule and law because they can't satisfy the financial regulations that protect the lay investors. And financial scams are lucrative?
She has "raised" hundreds of millions in this case. People losing the their life savings are furious. I'm sure in this case, these people have asked for her head. People who have had millions to start with are usually in the position of power, and they seem to get their wish this time.
I don't know. 80% returns? Really? She was able to get 80% returns? GUARANTEED? This lady kind of sounds like a potential Madoff who got caught early. Yes, she may be totally innocent. That is one of many possibilities. Having mentioned that... man... 80%? guaranteed? Trading Futures? Maybe the punishment is a bit harsh, but it really does seem she was not totally on the up and up. And secondly, what kind of a person…
"A bit harsh" is a lot of an understatement. They're talking about killing her .
"A bit harsh", my god, get a grip
This Economist article paints a very different picture from the article below: http://www.chinadaily.com.cn/china/2009-12/18/content_920158... Businesswoman gets death sentence for defrauding investors out of tens of millions of dollars vs. Businesswoman gets death sentence for fundraising
Still, a death sentence?
Hopefully there will be people left to run the country after their property and construction bubble pops.
Here are a list of financial crimes punishable by death, per Wikipedia (hope this is a reliable source since there seems to be a debate above!)
* 12. Whoever, for the purpose of illegal possession, unlawfully raises funds by means of fraud
* 13. Whoever commits fraud by means of financial bills in any of the following ways:
o (1) knowingly using forged or altered bills of exchange, promissory notes or cheques;
o (2) knowingly using invalidated bills of exchange, promissory notes or cheques;
o (3) illegally using another's bills of exchange, promissory notes or cheques;
o (4) signing and issuing a rubber cheque or a cheque, on which the seal is not in conformity with the reserved specimen seal, in order to defraud money or property; or
o (5) signing or issuing bills of exchange or promissory notes without funds as a guaranty, in the capacity of a drawer, falsely specifying the particulars thereon at the time of issue, in order to defraud money or property.
* 14. Whoever commits fraud by means of a letter of credit in any of the following ways:
o (1) using a forged or altered letter of credit or any of its attached bills or documents;
o (2) using an invalidated letter of credit;
o (3) fraudulently obtaining a letter of credit; or
o (4) in any other ways.
* 15. Whoever falsely makes out special invoices for value-added tax or any other invoices to defraud a tax refund for exports or to offset tax money if the amount involved is especially huge, and the circumstances are especially serious, thus causing especially heavy losses to the interests of the State.
* 16. Whoever forges or sells forged special invoices for value-added tax shall, if the number involved is especially huge, and the circumstances are especially serious so that economic order is seriously disrupted.