China jails founder, fines disgraced property giant Evergrande

BEIJING: China sentenced the founder of Evergrande, Xu Jiayin, to life in prison and fined the property conglomerate more than $2 billion for major financial misconduct, five years after a high-profile default. Evergrande, once the epitome of Chinese real estate, faltered as credit restrictions curbed its growth. A Southern China court imposed a 15.82 billion yuan ($2.4 billion) fine on the firm and its real estate division, while sentencing Xu to life in prison for offenses like large-scale financial fraud.

Xu's downfall began in 2021 when the company failed to repay creditors. The court accused Xu and Evergrande of persistently inflating assets and concealing liabilities, gaining control of financial institutions through bribery, and causing significant economic losses and social harm. Xu pleaded guilty to charges including embezzlement and bribery.

Xu's fall from grace was evident in stark contrast between photos showing him in his prime and a recent image of the now 67-year-old wearing white hair, flanked by police officers. Five other senior Evergrande executives received prison sentences ranging from six to 18 years for fraud, with some relatives of the defendants present during the verdict.