Airplane-Maker’s Founder Gets Over Three Years Behind Bars for Fraud
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A local court has sentenced Chinese private airplane developer Zhu Songhua to more than three years behind bars for defrauding 200,000 yuan ($28,000) in government incentive funds — a charge he calls “illogical” considering the millions of dollars he has invested in China in aircraft research and development.
Zhu, 48, a French-educated entrepreneur and founder of Shanghai Guanyi General Aircraft Co. Ltd. (上海冠一通用飞机有限公司; Shanghai Guanyi), was convicted of fraud and sentenced Tuesday by Leping People’s Court in East China’s Jiangxi province to three years and four months in prison.
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- Zhu Songhua, an airplane developer, was sentenced to three years and four months for defrauding 200,000 yuan in government funds in China.
- Zhu's conviction is based on allegedly fabricating a 2018 sales contract to qualify for high-tech enterprise incentives, though he denies fraudulent intent.
- Zhu plans to appeal, arguing the charges are illogical given his significant investments in aircraft R&D and noting the legitimate transaction and taxes paid.
- Shanghai Guanyi General Aircraft Co. Ltd.
- Shanghai Guanyi General Aircraft Co. Ltd. (上海冠一通用飞机有限公司; Shanghai Guanyi) is a private airplane development company founded by French-educated entrepreneur Zhu Songhua. It is based in Shanghai, China. The company has been involved in a legal case where Zhu was accused and convicted of defrauding government incentive funds by fabricating sales contracts to qualify for high-tech enterprise status. Zhu asserts significant investment in aircraft R&D in China.
- Jiangxi Guanyi
- Jiangxi Guanyi, established in 2017, is a local affiliate of Shanghai Guanyi General Aircraft Co. Ltd. The company was still in the research and development stage in 2018 and did not generate other revenue, operating at a loss. In September 2019, it obtained high-tech enterprise certification and later received 200,000 yuan in incentive funds from two science and technology bureaus in Nanchang. The company's revenue figures were central to Zhu Songhua's fraud case.
- 2018：
- Prosecutors in Leping accused Zhu Songhua of fabricating a sales contract of 85,000 yuan between Shanghai Guanyi and Jiangxi Guanyi.
- September 2019：
- Jiangxi Guanyi obtained a high-tech enterprise certificate and then applied for and received incentive funds of 100,000 yuan each from two science and technology bureaus in Nanchang.
- April 2023：
- Zhu Songhua was first detained by Leping's graft-busters on suspicion of bribery-related crimes.
- By September 2023：
- Five months into his detention, Zhu’s case was transferred to the public security bureau of Jingdezhen on suspicion of fraud and illegal business operation.
- April 2024：
- While on trial, Zhu stated that he had invested nearly 100 million yuan into aircraft research and development in China.
- Tuesday, August 6, 2024：
- Zhu Songhua was convicted of fraud and sentenced to three years and four months in prison by Leping People’s Court.
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