Anbang chairman fights fraud conviction

Wu Xiaohui was sentenced earlier this month

New York /
May.May 31, 2018 03:02 PM

Wu Xiaohui (Credit: Getty Images and Carles Rabada on Unsplash)

Wu Xiaohui is not going down without a fight.

The former chairman of insurance giant Anbang Group, which had a spectacular rise and equally dramatic fall as New York real estate’s flashiest buyer, is reportedly appealing his conviction on charges that he was behind a $12 billion fraud and embezzlement scheme.

Earlier this month, Wu was sentenced to 18 years in prison after a one-day trial. He was found guilty of embezzling about $1.6 billion and illicitly raising $10.2 billion in capital. At the time, he reportedly showed remorse, saying he compromised “the safety of investors’ capital” and “crushed national financial security.” Still, he decided to appeal, the South China Morning Post reported.

“Wu has appealed for innocence. The Shanghai High People’s Court has formed a collegial court to review the appeal,” Chen Youxi, a notable Chinese attorney, posted on his personal Weibo and WeChat accounts on Wednesday.

After a series of hefty acquisitions in the U.S. and Europe — including the Waldorf Astoria and the Strategic Hotels & Resorts portfolio — Anbang hit a regulatory snag. In February, the Chinese government announced that it would appoint an insurance regulator to take control of the insurance conglomerate, saying it had fallen into financial crisis.

Other big Chinese players under heightened regulatory scrutiny include HNA Group, which just sold a San Francisco office tower to Northwood Investors for $300 million.

[SCMP] — Kathryn Brenzel


Related Articles

arrow_forward_ios
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Prologis Chairman and CEO Hamid Moghadam (Getty, Prologis)
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Industrial space “effectively sold out” amid leasing frenzy, Prologis says
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Starwood raises $10B for distressed real estate plays
Aulder Capital CEO Jonah Bamberger and 162-164 East 82nd Street (Rosewood Realty Group, Slate Property Group)
Two Upper East Side apartment buildings head to foreclosure sale
Two Upper East Side apartment buildings head to foreclosure sale
Stripes founder Ken Fox and a rendering of 40 10th Avenue (Stripes, Neoscape)
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
Private equity firm carves out 14K sf at Aurora’s Solar Carve building
Resurrection! Work resumes on stalled Clinton Hill residential project
Resurrection! Work resumes on stalled Clinton Hill residential project
Resurrection! Work resumes on stalled Clinton Hill residential project
CRE held up through the pandemic far better than most expected (iStock)
How commercial real estate survived the pandemic
How commercial real estate survived the pandemic
Harbor Group grabs $558M in financing for Black Rock purchase
Harbor Group grabs $558M in financing for Black Rock purchase
Harbor Group grabs $558M in financing for Black Rock purchase
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...