World

Jared Kushner-Linked Chinese Executive Sentenced to Prison for Massive Fundraising Fraud

An insurance executive with ties to President Donald Trump’s son-in-law Jared Kushner has been sentenced to 18 years in prison for embezzlement and fundraising fraud amounting to $10 billion.

Related: Kushner was China’s compliant ‘lucky charm,’ met with ambassador alone, former U.S. officials say

Wu Xiaohui, who is the former chairman and founder of the Chinese holding company Anbang Insurance Group, is accused of diverting 65.25 billion yuan ($10.4 billion) to firms he controlled for overseas investment, repaying debt and “personal squandering,” the state-run China Daily reported.

The Shanghai No. 1 Intermediate People’s Court on Thursday announced that Wu was also guilty of embezzling 10 billion yuan ($1.6 billion) in premiums from policyholders to feed cash to his other companies.

Wu, who started Anbang in 2004 and personally benefited from 2011 to 2017, met with Kushner on November 16, 2016, shortly after Trump became president, to toast the implications of the victory for global business, The New York Times reported. At the time, Wu and senior White House adviser Kushner were said to be closing in on an agreement to redevelop a troubled Manhattan tower at 666 Fifth Avenue owned by Kushner’s family-owned real estate business, Kushner Cos.

The $4 billion deal with Anbang—which the Campaign Legal Center’s general counsel Larry Noble called a "sweetheart deal"— fell through following criticism from U.S. lawmakers.

Chinese regulators seized control of Anbang, which owns the renowned Waldorf Astoria hotel in New York City, in February. The following month, Wu admitted in court that he had a hand in fundraising more than 723 billion yuan ($115.2 billion) in illegal deals. He contested charges but by the end of the trial “expressed profound reflection and remorse for his crime,” according to the court’s summaries.

Russia probe Special Counsel Robert Mueller is reportedly looking into Kushner’s talks with foreign investors during the presidential transition and his efforts to obtain financing from abroad for Kushner Cos., including conversations he had with Anbang,

Editor's Pick