October 20, 2010
Translated by Ruoji Tang
Original: [Chinese]



Three months ago, after receiving reports of prostitution and illegal drug use taking place on the premises, police raided the Chonqing Hilton's Diamond Dynasty (鉆石王朝) nightclub.Several shareholders in the five-star hotel, including Peng Zhimin, were detained for allegedly engaging in activities in connection to criminal gangs.

The case is now set to enter the trial stage.

The 40 accused, including Peng and the club manager Ceng Zhiqiang have all sought legal counsel. Prosecutors are also preparing for trial.
 
Prior to his arrest, Peng was also chairman of Qinglong Real Estate Company.

In addition to managing Diamond Dynasty, Ceng Zhiqiang was the head of Chongqing Huayu Advertising Company Ltd. The company had worked with a number of both large and small newspapers in the city and also worked on ads for Chongqing television station.
 
Ceng's arrest led to the removal of several high-level officials, including the deputy head of the Chongqing Municipal Party Committee Propaganda Department Liu Jianchun and the head of Chonqing television station Li Xiaofeng.

Liu Jiachun was arrested on July 27th. Li Xiaofeng was arrested on October 10th, and is being interrogated by government authorities.
  
According to sources from the Chongqing judiciary, Peng Zhimin and others will be tried in the Chongqing Municpality's No. 5 Intermediate People's Court.

Links and Sources
Economic Observer: Original Report of Raid