Last summer everyone was talking about Wenzhou, China, a manufacturing town where business owners were defaulting left and right. The result was mass unemployment, runaway debtors, criminal investigations, and suicide.With the town receiving that much scrutiny from authorities, it should surprise no one that other forms of financial “fraud” are being uncovered. It should also surprise no one that the Chinese are taking these alleged crimes very seriously.
Take the case of Wang Caiping for example. Reuters (via Xinhua) reports that she has been sentenced to death after being found guilty of “fraud of financing.”
Xinhua said Wang borrowed the money between January and October 2010 promising to buy equipment, invest in property and open credit guarantee firms, but instead used the cash to speculate in futures and gold trading along with her elder brother, Wang Guanglin, who is still at large.
After heavy losses, including 30 million yuan in September 2010 alone, Wang tried to negotiate with some of her creditors in November 2010, but they turned her over to police after the meeting broke up, Xinhua reported.
Wang’s attorneys tried to argue that her futures investments were legal, but to no avail (obviously). She has some hope though — Reuters also reports that a sentence of jail time and death means is often reduced to life in prison. She was working with her brother, who is still at large.
Wang isn’t the only woman in Wenzhou facing this fate. Wu Ying, whose case is currently under review with the Chinese supreme court, was sentenced to death by a local court for “illegally raising” 770 million yuan in funds.