DOWNFALL

China Sentences Ex-Anbang Chief to 18 Years for Fraud

Wu Xiaohui attracted regulators after a spate of overseas acquisitions, including New York’s Waldorf Astoria.

A court in Shanghai on Thursday sentenced a Chinese tycoon known for his high-profile international acquisitions to 18 years in prison after he was convicted of fraud and embezzlement. Wu Xiaohui, the founder and former head of Anbang Insurance Group Co., was accused of orchestrating a $10.2 billion fraud scheme, illegal fundraising, falsifying documents, and masking how he controlled the company. He gained international recognition for leading the company on an overseas buying spree that included New York’s Waldorf Astoria and other luxury properties, but the move sparked concerns among regulators that the expansion would endanger China’s financial system. In addition to the 18-year jail term, Wu will also have $1.65 billion of his assets confiscated.