Economic Observer Online
Translated by Pang Lei
May 4, 2011
Original article: [Chinese]

At 10am this morning, Chongqing's No. 1 Intermediate People's Court sentenced Peng Zhimin (彭治民), the chairman and CEO of Qinglong Wuye Co. Ltd (慶隆屋業(yè)發(fā)展有限公司) to life in prison on charges of involvement in organized crime, organizing a prostitution ring, lending money at high rates, illegal logging, assault, corruption, and bribery.

Peng, who was also a shareholder in the Chongqing Hilton, was also stripped of his political rights for life and had all his possesions confiscated by the court.

Twenty six other indivuduals implicated in the case were also sentenced to terms of between 18 months and life imprisonment for participating in gang-related activity and other charges.

Another five individuals were sentenced to prison terms ranging from 3 to 10 years and 6 months on charges of accepting bribes.

The Chongqing Huayu Advertising Company Ltd (重慶華宇廣告有限公司) was also fined 5 million yuan for accepting bribes.

According to the court, from 2003, Peng Zhimin organized for a prostitution ring to start operating from within the Diamond Dynasty nightclub (鉆石王朝), located in the basement of the Chongqing Hilton. According to the precise figures presented by prosecutors, more than 2,200 instances of prostitution took place, netting Peng 4 million yuan in illegal profits.

Peng Zhimin was also involved in the illegal logging of over 71 hectares of protected forestland in order to push ahead with plans to development land.

Peng was also found guilty of paying 2.5 million in bribes to government officials such as Lu Yonghe, Huang Hongwei and others.

The trial of Peng Zhimin and the 31 other accused was held in January this year following a raid on the Chongqing Hilton in June 2010.

According to earlier reports in the Economic Observer, The Chongqing Huayu Advertising Company Ltd had worked with a number of newspapers in the city and also worked on ads for Chongqing television station and arrests made in relation to the case had 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.
 
Links and Sources
Economic Observer Online: Former Hilton Shareholder Peng Zhimin Stands Trial
Economic Observer Online: Court Date Close for Chongqing Hilton Shareholder Peng Zhimin
The Economic Observer: Investor in Chongqing's Hilton Hotel Tied to Criminal Gangs