The businessman managed to earn millions by changing his country’s economic model but was sentenced to 14 years in prison for his tax frauds.
Huang Guangyu became the richest person in China during the 2000’s thanks to its chain of stores, Gome Electrical Appliances. The Asian managed to gather a million dollar wealth and escape poverty thanks to the sale of household appliances. But the billionaire lost his entire fortune due to his corruption trials.
The businessman He had an estimated fortune of $60 billion when he was put on trial in 2008. The Chinese justice system sentenced him to a sentence of 14 years in prison, a fine of 90 million dollars and a seizure of his positions for another 30 million dollars. Despite the heavy penalty, many considered that Guangyu was favored in his trial because death sentences had previously been given in similar cases.
The beginnings of Huang Guangyu
The Chinese was born into a low-income family in the Shantou region, southern Guangdong province. The poverty of his neighborhood forced him to look for a way to earn life at a young age. That’s how he left school at the age of 16 and began selling books, radios and small used items.
The entrepreneur managed to raise capital of $500 to sell his goods in a small store in 1985. The Chinese established low prices, which ended up destroying his competitors. Guangyu was also favored by the departure of the communist model and the austerity of his compatriots began to form a modest economic power in the middle class.
How Huang Guangyu became a millionaire
The billionaire invested in the items that the Chinese most valued in the late 80’s and 90’sair conditioners and mobile phones. His earnings allowed him to employ his brothers and diversify into the real estate market. Its business model also expanded throughout China and had 1,200 franchises in 200 cities.
From millionaire to prisoner: what happened to Huang Guangyu
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Finance Asia
The Chinese businessman was blamed for the charges of fraud, abuse of information, bribery and other crimes that were not specified by justice agencies. The manipulation of Gome Electrical Appliances data also involved former Shenzhen mayor Xu Zongheng; former Guangzhou police chief Chen Shaoji; the director of the Guangdong People’s Consultative Conference, Wang Huayuan; in addition to a dozen senior officials and private investors from southern China.
Source: Ambito
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