China: Fallen Hengfeng Bank Chief Faces Trial in $1.45 Billion Capital Graft Case

Cai Guohua, former chairman of joint stock lender Hengfeng Bank, will stand trial for his life starting Tuesday in Shandong on multiple allegations in the latest episode of a nearly three-year cleanup of the troubled bank.

Cai, 55, who was placed under investigation in November 2017, faces charges including abuse of power, corruption, embezzlement, bribery and illegal loan issuance, with illicit gains amounting 10.3 billion yuan ($1.45 billion). Penalties on conviction could include life in prison or execution. The trial is expected to last several days, Caixin learned.

Shandong province-based Hengfeng Bank Co. Ltd. was among several lenders that showed up on regulators’ radar amid a broad campaign to curb financial risks in the banking sector.

The full original article can be found at caixinglobal.com

(Photo: 视觉中国)

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