Evergrande Founder Hui Ka Yan Sentenced to Life in Prison

A Chinese court sentenced Hui Ka Yan, the billionaire founder of the collapsed property giant Evergrande, to life in prison on Thursday, marking a major legal milestone in the saga of the company whose default sent shockwaves through the global economy. The Shenzhen Intermediate People's Court also fined Evergrande Group and its subsidiary, Evergrande Real Estate Group, a combined 15.82 billion yuan, approximately $2.4 billion.

The court found that between 2016 and 2021, Hui and Evergrande engaged in large-scale financial fraud, including inflating assets and concealing liabilities. Hui pleaded guilty in April to charges that included fundraising fraud, misuse of funds, securities fraud, and bribery. In addition to the life sentence, he was ordered to forfeit all personal assets and was stripped of political rights for life.

Five other senior Evergrande executives were also sentenced to prison terms ranging from six to 18 years for crimes including fraud and illegally taking public deposits. The court stated that the criminal acts involved "particularly huge amounts and egregious circumstances" and caused "particularly serious social harm."

Hui's appearance in court, dressed in a...