Cedar Holdings Founder Gets Life Sentence in $2.9 Billion Fundraising Fraud
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The founder of Cedar Holdings Group Co. Ltd., once celebrated as Guangzhou’s largest private company, was sentenced to life in prison on Tuesday for masterminding a sweeping fundraising fraud that caused investor losses exceeding 20 billion yuan ($2.9 billion).
The Guangzhou Intermediate People’s Court convicted Zhang Jin, the conglomerate’s controlling shareholder, ordering the confiscation of all his personal assets. The court also found Cedar Holdings guilty of fundraising fraud and illegally absorbing public deposits, bringing legal closure to the collapse of a former Fortune Global 500 company.
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- Zhang Jin, founder of Cedar Holdings, was sentenced to life in prison for a fundraising fraud causing losses over 20 billion yuan ($2.9 billion), affecting more than 6,800 investors.
- Cedar Holdings, once a Fortune Global 500 company, and its executives were convicted and fined; the company itself received a 1.1 billion yuan fine.
- Fraud involved fake trade deals and wealth management products; court-ordered restitution faces uncertainty regarding recovery for victims.
- Cedar Holdings Group Co. Ltd.
- Cedar Holdings Group Co. Ltd., founded in 1997, was once Guangzhou's largest private company and a Fortune Global 500 entity for four years. Its founder, Zhang Jin, received a life sentence for orchestrating a fundraising fraud exceeding 20 billion yuan in investor losses. The company relied heavily on financing trade, fabricating transactions to inflate revenue. It was fined 1.1 billion yuan for fundraising fraud and illegally absorbing public deposits.
- Cedar International Trust Co. Ltd.
- Cedar International Trust Co. Ltd. is a subsidiary of Cedar Holdings Group Co. Ltd. The court found that it misappropriated over 15 billion yuan in trust assets, resulting in investor losses exceeding 4.8 billion yuan. This information was disclosed during the sentencing of Cedar Holdings' founder, Zhang Jin, for a sweeping fundraising fraud.
- 1997：
- Cedar Holdings Group Co. Ltd. was founded.
- 2015：
- Cedar Holdings' revenue reached 59.3 billion yuan.
- 2017：
- Cedar Holdings' revenue rose to 221 billion yuan.
- 2018：
- Cedar Holdings entered the Fortune Global 500 list and maintained its ranking for four consecutive years.
- September 2019：
- Cedar Holdings became insolvent, according to the court, but continued raising funds despite being unable to repay principal and interest.
- By February 10, 2026：
- The sentencing of Zhang Jin and other executives took place, with Zhang being sentenced to life in prison and Cedar Holdings receiving a 1.1 billion yuan fine.
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