The criminal verdict of He Xuemei, the former labor union chairman and vice president of ZTE Corporation, in a case involving fund-raising fraud was recently made public, showing that He Xuemei was involved in a case amounting to more than 2.1 billion yuan (RMB, same below) and was sentenced to 20 years in prison at the final trial.
According to a criminal verdict disclosed on China’s Judicial Documents website, He Xuemei was sentenced by the Shenzhen Intermediate Court in April 2020 to 20 years in prison and 200,000 yuan of property confiscated for the crimes of capital raising fraud, misappropriation of funds, and misappropriation of office, involving more than 2.1 billion yuan.
He Xuemei failed to repay approximately 900 million yuan of wealth management funds to nearly 4,000 defrauded people, which were all advanced by ZTE.
The verdict also revealed that on the day the case was filed, July 11, 2017, He Xuemei was in the hospital for resuscitation, where she claimed to have taken 50 sleeping pills on her own. After being discharged from the hospital, He Xuemei expressed her willingness to cooperate with the investigation and was taken away by the police the same afternoon.
He Xuemei, former vice president and union chairman of ZTE Corporation. (Photo source: Internet)
According to public information, He Xuemei was born in 1970 and joined ZTE Corporation in 1998, serving as chairman of the company’s general labor union and vice president of the company before the incident. On June 6, 2017, He Xuemei resigned as the chairman of the labor union of ZTE Corporation.
Shortly after resigning as chairman of the labor union, on July 12, 2017, He Xuemei was detained.
At that time, ZTE Corporation issued an internal email notice stating that since late May of that year, the company formed a joint audit team to audit the historical work of the General Labor Union, and during the audit, He Xuemei resigned, while the joint audit team gradually found that the behavior of He Xuemei and others had seriously violated discipline and was suspected of serious job crimes; at the same time, He Xuemei’s act of fund raising and financial management in his personal name against the company’s employees was suspected of The company decided to report to the Shenzhen Public Security Bureau Economic Crime Investigation Bureau; on July 12, He Xuemei surrendered and has been criminally detained.
It is alleged that from 2015 to 2017, He Xuemei actively helped employees to manage their wealth, threatening to get high returns, as a result, as many as 8,800 people were cheated, and some executives also handed over their money to He Xuemei. The money from these activities ended up in Ho’s personal account, not the company’s.
The court documents said that during the two years, He Xuemei raised a total of 2.119 billion yuan in funds, with contributors including ZTE Corporation’s holding company, participating companies, affiliated companies, external partners and outsiders, in addition to employees of ZTE Corporation.
He Xuemei used the collected funds to purchase high-risk trust financial products, purchase real estate, buy and sell stocks in the secondary market, return the misappropriated company funds, repay personal debts, and embezzle and transfer them to overseas.
When it was difficult to return the funds raised due to financial losses and transfer of funds, He Xuemei continued to raise funds with fictitious financial performance and used the newly raised funds to return the principal and interest of the funds raised to maturity. Thereafter, He Xuemei instructed others to destroy accounts, cancel bank cards and arrange relevant personnel to hide in order to cover up the criminal facts and avoid returning funds.
ZTE’s audit found that He Xuemei had not returned the financial funds of 3,921 people, amounting to a total of 899 million yuan.
In addition, Lu media described He Xuemei as a multi-faceted person.
She also has 300,000 followers on Weibo and constantly promotes the public welfare activities she is involved in, mainly focusing on poor children in mountainous areas and veterans. She also often posts photos of her husband and children to create the illusion of a happy family. The outside world used the term “Zhongxing Guo Meimei” to describe her.
Later, He Xuemei was revealed to have signed a divorce agreement with her husband long ago, there are also senior ZTE employees broke the news that He Xuemei indifferent and heartless, a colleague died, employees to the union to apply for a compassionate pension to the family of the deceased employee, the results were He Xuemei only 200 yuan to send.
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