Zhong Decai sentenced to life imprisonment for affiliated companies | Zhong Decai | life imprisonment
This morning, the Second Intermediate People's Court of Shanghai publicly announced the verdict on the defendant Zhong Decai's fundraising fraud case in accordance with the law. The defendant Zhong Decai was sentenced to life imprisonment, deprived of political rights for life, and fined 2 million yuan.
The court's trial found that from 2012 to 2020, Zhong Decai used his actual control of Shanghai Kaichen Industrial Co., Ltd., Hangzhou Kaichao Elderly Care Investment Management Co., Ltd., Zhejiang Huagu Elderly Care Service Co., Ltd., Zhejiang Kaichen Elderly Care Service Co., Ltd. and other companies involved in the case, under the pretext of investing in elderly care projects, leasing elderly care rooms or beds for profit, providing elderly care services, etc., to illegally raise more than 920 million yuan from more than 2900 unspecified members of society by signing special contracts for elderly care service reservation, special lending management contracts for the elderly care industry, and rental contracts for elderly care housing, promising to repay principal and interest, and agreeing on high annual returns. The unpaid principal was more than 760 million yuan. The raised funds are mainly used for repayment of principal and interest, payment of financing platform commissions, commission for sales representatives, repayment of debts, and other purposes.
From September 2016 to April 2019, Zhong Decai, together with others, established Shanghai Fulekang Community Elderly Care Service Co., Ltd. under the name of elderly care services. Through promising to return discount discounts after recharging, repayment upon maturity, and signing Fulekang Community Service Platform member contracts, he illegally raised more than 363 million yuan in funds from 1110 unspecified members of society, with an unpaid principal of more than 166 million yuan. The raised funds are mainly used for repayment of principal and interest, transfer to accounts of Zhong Decai's affiliated companies and other companies, and payment of employee salaries.
The Shanghai Second Intermediate People's Court believes that Zhong Decai used companies such as Shanghai Kaichen Industrial Co., Ltd. or colluded with others to illegally occupy and illegally raise funds through fraudulent methods, with a huge amount of money. His behavior has constituted the crime of fundraising fraud and should be punished according to law. Based on the facts, nature, circumstances, and asset status of this case, the above judgment is made in accordance with the law.
The judicial authorities in this city will continue to strengthen the recovery and recovery of assets involved in the case.