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Huang Guangyu, formerly China's richest man, on trial for bribery
Huang Guangyu has gone on trial a year and a half after being detained on charges of insider trading and bribery. Photograph: AFP/Getty Images
A home appliance tycoon who was once China's richest man offered officials hundreds of thousands of pounds in bribes and engaged in illegal foreign exchange and insider trading, prosecutors alleged yesterday.
The trial of Huang Guangyu, former chairman of the hugely successful electrical chain Gome, began yesterday in Beijing, almost a year and a half after his detention.
The 41-year-old's rags-to-riches story had prompted envy as well as admiration in China. Huang, also known as Wong Kwong Yu, was born into a poor farming family in southern Guangdong, and dropped out of school at 16.
He and his brother began hawking cheap electrical goods in Beijing, but by 2008 his fortune was estimated to stand at between $2.7bn (£1.75bn) and $6bn and he had topped the Hurun China rich list.
Chinese media have said that Huang has disputed evidence relating to the insider trading charges. His position on the other charges is unclear.
He was detained for suspected stock market manipulation in November 2008, but was not charged formally until February this year. The state news agency Xinhua said the investigation into his affairs led to the detention or prosecution of several high-ranking officials.
According to Chinese media, the billionaire paid five senior police officers and tax officials a total of 4.56m yuan (£435,000) in bribes to ensure favourable treatment in tax disputes.
They included a 1m yuan payment to Xiang Huaizhu, a former deputy director at the public security ministry's economic crime investigation bureau, state media have reported. Xiang stood trial last month but awaits a verdict.
Huang is accused of using individuals in Hong Kong to illegally convert yuan into Hong Kong dollars, and prosecutors have also alleged insider trading in connection with his huge purchases of Beijing Centergate Technologies stocks. The indictment suggests that he and his aides made 400m yuan through illicit deals.
His wife, Du Juan, formerly a Gome board director, is also standing trial for alleged involvement in those deals, as is the former chairman of Beijing Centergate.
Gome has said it has not found any embezzlement of corporate funds or assets used to bribe officials, suggesting the bribery was the work of an individual.
Legal experts say Huang could serve from 10 to 15 years if found guilty and Chinese courts very rarely acquit defendants. Trials usually last a few days, but verdicts may come weeks or months later.
Only one reporter, from Xinhua, was allowed into the court.
"Huang's case revealed loopholes that China ignored while concentrating on its economic growth," Xinhua wrote shortly after his arrest.
"His detention inspired people to call for a healthier market environment for business owners to compete in."
Huang had previously told reporters that being raised as a Catholic had determined the way he did business.
An LA Times profile in 2006 reported that all Gome employees' business cards bore a hotline number to report misdeeds and Huang's three cardinal rules: "Do not accept gifts from customers. Do not take kickbacks. Do not use your position for personal gain."
Huang Guangyu, formerly China's richest man, on trial for bribery | World news | guardian.co.uk
Huang Guangyu has gone on trial a year and a half after being detained on charges of insider trading and bribery. Photograph: AFP/Getty Images
A home appliance tycoon who was once China's richest man offered officials hundreds of thousands of pounds in bribes and engaged in illegal foreign exchange and insider trading, prosecutors alleged yesterday.
The trial of Huang Guangyu, former chairman of the hugely successful electrical chain Gome, began yesterday in Beijing, almost a year and a half after his detention.
The 41-year-old's rags-to-riches story had prompted envy as well as admiration in China. Huang, also known as Wong Kwong Yu, was born into a poor farming family in southern Guangdong, and dropped out of school at 16.
He and his brother began hawking cheap electrical goods in Beijing, but by 2008 his fortune was estimated to stand at between $2.7bn (£1.75bn) and $6bn and he had topped the Hurun China rich list.
Chinese media have said that Huang has disputed evidence relating to the insider trading charges. His position on the other charges is unclear.
He was detained for suspected stock market manipulation in November 2008, but was not charged formally until February this year. The state news agency Xinhua said the investigation into his affairs led to the detention or prosecution of several high-ranking officials.
According to Chinese media, the billionaire paid five senior police officers and tax officials a total of 4.56m yuan (£435,000) in bribes to ensure favourable treatment in tax disputes.
They included a 1m yuan payment to Xiang Huaizhu, a former deputy director at the public security ministry's economic crime investigation bureau, state media have reported. Xiang stood trial last month but awaits a verdict.
Huang is accused of using individuals in Hong Kong to illegally convert yuan into Hong Kong dollars, and prosecutors have also alleged insider trading in connection with his huge purchases of Beijing Centergate Technologies stocks. The indictment suggests that he and his aides made 400m yuan through illicit deals.
His wife, Du Juan, formerly a Gome board director, is also standing trial for alleged involvement in those deals, as is the former chairman of Beijing Centergate.
Gome has said it has not found any embezzlement of corporate funds or assets used to bribe officials, suggesting the bribery was the work of an individual.
Legal experts say Huang could serve from 10 to 15 years if found guilty and Chinese courts very rarely acquit defendants. Trials usually last a few days, but verdicts may come weeks or months later.
Only one reporter, from Xinhua, was allowed into the court.
"Huang's case revealed loopholes that China ignored while concentrating on its economic growth," Xinhua wrote shortly after his arrest.
"His detention inspired people to call for a healthier market environment for business owners to compete in."
Huang had previously told reporters that being raised as a Catholic had determined the way he did business.
An LA Times profile in 2006 reported that all Gome employees' business cards bore a hotline number to report misdeeds and Huang's three cardinal rules: "Do not accept gifts from customers. Do not take kickbacks. Do not use your position for personal gain."
Huang Guangyu, formerly China's richest man, on trial for bribery | World news | guardian.co.uk
