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The Fall of D'Long
Introduction
In April 2006, Tang Wanxin (Wanxin), President and one of the founders of the bankrupt Chinese conglomerate, the D'Long Group (D'Long), was sentenced to eight years in prison for his role in a fraud described by the local media as 'China's biggest stock scandal'. D'Long, which had failed to repay liabilities amounting to Yuan 16 billion3, was accused of illegally raising more than Yuan 43.7 billion from the public between 2001 and 2004. It was also alleged that D'Long had bought shares worth Yuan 67.8 billion from three of its listed companies, Torch Automobile Group Company Limited (Torch Automobile), Shenyang Hejin Holding Investment Company Limited (Shenyang Hejin), and Xinjiang Tunhe Investment Company (Tunhe) and raked in more than Yuan 9.8 billion from the dealings. |
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Along with Wanxin, several employees of D'Long were sentenced to prison by The Wuhan Intermediate People's Court. D'Long was the largest publicly traded company in China and Wanxin and his three brothers, popularly known as the Tang brothers, were among the richest citizens in China. When D'Long was set up in 1986 at Xinjiang, it was just a small service that developed and printed photographs.....
Introduction Contd...- Next Page>>
