theft

April 14 (UPI) — The founder and former chairman of Chinese property giant China Evergrande Group pleaded guilty Tuesday to a slew of charges, including embezzlement, securities fraud and corporate graft at a trial in the southern city of Shenzhen.

Hui Ka Yan admitted “illegally absorbing public deposits” where buyers’ down payments on apartments off-plan were used to fund hundreds of other projects in the case in which Evergrande Real Estate Group also faced a similar set of charges, the Intermediate People’s Court of Shenzhen said in a statement online.

Evergrande took in millions of dollars from buyers that, instead of being used to complete the properties they were purchasing, were diverted to new developments, the court heard.

Hui also admitted fundraising fraud, illegal issuance of loans and unauthorized disclosure of “important information” during the high-profile two-day trial, which was attended by deputies from the National People’s Congress, the Chinese People’s Political Consultative Conference of which he was once a standing committee member, and investors.

The court statement said China Evergrande Group and Evergrande Real Estate Group were also indicted on charges of illegally collecting public deposits, fundraising fraud, illegal issuance of loans and fraudulent issuance of securities.

The downfall of the business tycoon, once Asia’s richest with a net worth of more than $42 billion, began in 2021 when the property empire he founded 25 years earlier collapsed after a massive Chinese property bubble burst, leaving 1,300 half-finished Evergrande developments financed with $300 billion of debt.

Hui was placed under house arrest in September 2023, prompting the suspension of trading in Evergrande shares by market regulators across the border in Hong Kong, only a month after trading had resumed following a 17-month suspension.

The company was also the subject of a winding-up petition in a Hong Kong court brought by creditors and had sought protection from being made bankrupt in the United States in a New York court the previous month.

Hong Kong regulators initially suspended Evergrande for failing to issue financial results for two years. When it did report in July 2023, it said it had lost $81.1 billion total in 2021 and 2022, mostly through payments to suppliers and lenders, as it battled to finish thousands of housing projects across 280 Chinese cities.

In January 2024, after repeated reprieves to allow it time to come up with a viable plan to restructure liabilities that had by then grown to at least $325 billion, the court in Hong Kong placed Evergrande into liquidation.

Hui was handed a $6.5 million fine in March 2024 for Evergrande, stating in its results that revenue was $78 billion more than it actually was and was handed a lifetime ban from participating in China’s capital market.

The final blow came in August 2025 with the delisting by regulators of Evergrande shares from the Hong Kong Stock Exchange, almost 16 years to the day after it was the most oversubscribed IPO of 2009 with a valuation in excess of $50 billion.

The ban was imposed after an 18-month deadline for Evergrande stock to resume trading passed the previous month, with the company opting not to appeal the decision.

Hui had led a 15-year drive to grow Evergrande into one of China’s largest businesses, spending billions expanding into tourism and recreation, healthcare, finance, EV manufacturing and infrastructure, entertainment and agribusiness.

In 2020, it began work on a new $1.7 billion, 100,000-seat stadium for Guangzhou FC, the soccer club it had purchased 10 years earlier.

However, the company’s growth was delivered through massive borrowing, much of it highly leveraged, with the result that six years on the stadium, like many of Evergrande’s projects, it remains incomplete after it was seized by the government in November 2021.

March 26 (UPI) — The House Ethics Committee will have a rare public hearing Thursday on allegations that Rep. Sheila Cherfilus-McCormick, D-Fla., stole $5 million in Federal Emergency Management Agency funds and used some of it to finance her campaign.

Depending on the outcome of the 2 p.m. EDT hearing, the committee could recommend expulsion from the House of Representatives. While House Republicans are already trying to oust her, Democrats are waiting to see what the hearing reveals.

“We believe that Rep. Cherfilus-McCormick has an opportunity to defend herself both from the allegations here under the dome as well as those in a courtroom,” The Hill reported Rep. Pete Aguilar, D-Calif., said. “After the conclusion of those, we will see what happens.”

Cherfilus-McCormick, who maintains her innocence, was indicted in November on the federal charges along with her brother, Edwin Cherfilus.

“This is an unjust, baseless, sham indictment — and I am innocent,” she said in a statement. “The timing alone is curious and clearly meant to distract from far more pressing national issues. From day one, I have fully cooperated with every lawful request, and I will continue to do so until this matter is resolved.”

Cherfilus-McCormick has tried to postpone the hearing because she is unable to speak freely due to the pending federal case.

“While I am limited in what I can address due to an ongoing federal matter, I have cooperated fully within those constraints,” The Hill reported she said. “I welcome the opportunity to set the record straight and challenge these inaccuracies when I am legally able to do so.”

She requested the committee “follow its own precedents and uphold fairness and not allow this process to be driven by politics or numbers.”

Cherfilus-McCormick’s family owns Trinity Healthcare Services. The company had a FEMA-funded contract to register people for COVID-19 vaccines, but in July 2021 was accidentally overpaid by $5 million by a Florida agency, the indictment said. Instead of returning the funds, Cherfilus-McCormick allegedly moved the money to different accounts “to disguise its source,” the Justice Department said. She then allegedly used some of the funds to finance her campaign.

The hearing will be conducted by an adjudicatory committee made up of four Democrats and four Republicans to decide if the allegations “have been proved by clear and convincing evidence” and “make findings of fact.”

The hearing will be public, according to House rules, but can be made private if the committee votes to do so. On Wednesday, the committee said it would start the hearing by considering Cherfilus-McCormick’s request to close the hearing to the public.

Cherfilus-McCormick was elected to Congress in 2022 in a special election to replace Democratic Rep. Alcee Hastings, who died in 2021 from pancreatic cancer.

An investigative subcommittee had been investigating for a while before her indictment and in January released a 59-page statement of its findings.

Rep. Greg Steube, R-Fla., filed a resolution to expel her from the House but held off on forcing a vote until the subcommittee releases its findings.

“$5 million, 15 indictments — like, if she’s found guilty on all 15 of those charges, she’s going to serve 53 years in prison,” The Hill reported Steube said.