China's Youngest Tycoon Gets Life in Prisonposted by MR WAVETHEORY at 12/04/2006 07:34:00 PM
How did he do it?
In 2003, Zhou paid 110,000 yuan (US$13,900) to Shenzhen Zhongxi Accounting Company to help him forge an audit of his personal finances. The fake reports inflated Shenzhen Minglun Group's net assets in 2002 to 1.2 billion yuan (US$152 million), although the company had actually been in debt to the tune of 280 million yuan (US$35 million) at the time.
Zhou used the fake reports to borrow 380 million yuan (US$48 million) from three banks, which he then used to acquire the 28 per cent stake in Sichuan Mingxing Electricity.
The court held that Zhou began to siphon capital from the Sichuan company after he gained control, acquiring nearly US$69 million with the help of several accomplices and causing the company to suffer huge financial losses.