Chinese Court Sentences Woman to Death for $113 Million Fraud

Dec. 18 (Bloomberg) -- China sentenced Wu Ying to death for defrauding investors of more than $100 million, the China News Service reported today, citing a court ruling.

Wu, born in 1981, raised 773 million yuan ($113 million) with promises of high returns, according to a report by the Beijing-based news service posted to Chinacourt.org, a Web site operated by the Supreme People’s Court of China. The Jinhua Intermediate People’s Court of Zhejiang province ruled Wu’s actions undermined the stability of the nation’s financial system, according to the report.

The ruling comes after China last week executed Yang Yanming, a former employee of China Galaxy Securities Co., for embezzlement and misappropriating 94.5 million yuan. Executions of company and government officials have been used by the Chinese government as part of its crackdown on corruption.

Calls today to the Jinhua Intermediate People’s Court seeking comment weren’t answered.

Wu used a portion of the money for futures trading, racking up 50 million yuan of losses, China News reported. She also spent almost 20 million yuan buying automobiles, including a 3.75 million yuan Ferrari SpA car, according to the report.

China in 2008 executed more people than the rest of the world combined, according to rights group Amnesty International.

To contact Bloomberg News staff on this story: Alfred Cang in Shanghai at acang@bloomberg.net

To contact the editor responsible for this story: Bruce Grant at bruceg@bloomberg.net