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China Yingxia Executives Receive the Death Sentence in

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IPO$ Member Level  Wednesday, 04/06/11 09:07:55 AM
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China Yingxia Executives Receive the Death Sentence in China for Illegal Fund Raising

Yingxia Jiao was sentenced to death for fraud in China.

Harbin Intermediate People's Court Sentencing December 30, 2010

Jiao Yingxia found guilty of fraud and sentenced to death and deprived of political rights for life and confiscation of all personal property;

Yang Chunxiao was found guilty of fund-raising fraud and sentenced to death, deprived of political rights for life and confiscation of all personal property;

Chen Weiming was found guilty of fraud in financing sentenced him to life imprisonment and deprivation of political rights for life and confiscation of all personal property;

Deng Lanting was found guilty of fraud in financing sentenced him to 13 years imprisonment and fined 300,000 yuan.

The remaining 11 defendants were sentenced to imprisonment ranging from 1 to 10 years and fined 20,000 to 100,000 yuan.

_____________________

Xinhua News Agency reported that Yingxia Jiao, chairwoman of China Yingxia International, and another company executive were sentenced to death in December by a court in Harbin for fraud, according to the news website China Business Knowledge.

Harbin Intermediate People's Court on December 29, 2010, Harbin Ying-Xia Kong (Holdings) Ltd

Jiao Yingxia was sentenced to death for fraud to illegal fund-raising.

Both Jiaoying Xia and Yang Chunxiao were sentenced to death.

Jiao Yingxia established in March 1999 the British Xia Industrial Co., Ltd., Harbin, registered capital of RMB 200 million yuan. In 2000, Jiao Yingxia without any approval in the case of planning for the public to raise funds to stock options beginning in 2002, shares the name of money is the way of high interest rates to attract investment, fraud and criminal activities to raise funds.

Funds raised were in the range of RMB 880 million yuan, the actual return to principal and interest of RMB 120 million yuan, the actual loss of RMB 750 million yuan.

The Court found that Jiaoying Xia, Yang Chunxiao (formerly British Xia, president) and others for the purpose of illegal possession, use fraudulent methods of illegal fund-raising.

This conduct was found to have constituted fraud in financing.

Valley Yujie, who illegally participated in the crime of illegal deposits from the public.

Liu Yansong was found to have intentionally destroyed accounting vouchers, consituting the crimes of concealment, intentionally destroying accounting vouchers, accounting books, financial and accounting reports.

Jiaoying Xia, Yang Chunxiao, Chen Weiming (formerly British Xia Group Financial Controller), Deng Lanting (Jiao Yingxia her husband, former vice chairman of the British Xia Group) were found to be defendants' accomplices.

China Yingxia International, based in Harbin, and a Chinese provider in the nutraceutical industry engaged in the development, manufacture and distribution of nutritional food products, dietary supplements and personal care products in the country, disclosed that its chief executive and chairwoman, Yingxia Jiao, is in talks with the committee formed by certain investors in China.

The investors with whom Ms Jiao is in negotiations had loaned funds to her prior to China Yingxia acquiring the Harbin Yingxia Industrial Group Co, its wholly-owned subsidiary in China, the firm explains. Currently, there are disputes between these investors and Ms Jiao concerning interest payments on these loans. These disputes adversely affected the normal operations of Harbin Yingxia, the company says.

Slowdown of Chinese economy contributed to firm's difficulties

Ms Jiao said she believes that the slowdown of the general economy in China contributed to the difficulties in cash flows of her businesses which have further affected the interest payments that are due to the initial Chinese investors in the firm.

She said that "the disputes that arose since November 2008 have caused our subsidiary, Harbin Yingxia Industrial Group Co Ltd to shut down its operations temporally in late February 2009. As a result, the financial performance of the company in the fourth quarter of 2008 and the first quarter of 2009 have been and will continue to be adversely affected. The company, therefore, withdraws its guidance of sales and net income for 2008 as well as other forward-looking statements previously set forth in Stock Exchange Commission filings, press releases and other public discussions."

May be unable to file Form 10-K timely

The company expects to give a more detailed account of these matters, as well as the full financial implications, in a separate press release or in its annual report on Form 10-K for the fiscal year ended December 31, 2008. These difficulties may cause the group to be unable to file the Form 10-K in a timely manner.

"Efforts have been made to resolve the disputes and to restore the daily operations of the company. Arrangement is being made with the participation of the Harbin municipal government officials to negotiate with the representatives of the initial Chinese 'investors.' We hope that an agreement will be reached with the committee of the investors that will allow the company to return to its operations and to carry out the annual audit and 10K preparation, although delay may be expected," Ms Jiao stated.

per unnamed source.




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