On March 2, the court made the judgment against Guan Guoliang, former board chairman of New China Life Insurance for his embezzlement and diverting of a huge amount of capital, which is called the “largest case in China’s insurance industry”.
　　The judgers at the court decided that the existing proofs could not prove that Guan Guoliang was guilty of embezzlement and acquitted him of this crime. In addition, two proofs about his diverting money proved invalid. At last he was brought into the verdict of diverting 200 million yuan and thus he was sentenced into the prison for six years. Ma Yue, another defendant of this case, was pronounced innocent.
　　Guan Guoliang, 52, came from Harbin, Heilongjiang. Before he was arrested, he was the board chairman of New Life Insurance. Ma Yue is the former director of Shanghai Ceheng Investment Consulting Co., Ltd. The public prosecution department accused Guan Guoliang and Ma Yue of collaborating on illegal deals. From June to August, 2003, Ma Yue helped New Life Insurance get the policies from Agricultural Bank of China. In exchange, Ma Yue got 3 million yuan from New China Life Insurance in the name of providing stock consultancy services through Shanghai Ceheng Investment Consulting Co., Ltd.
　　It is known that the amount of capital Guan Guoliang embezzled changed vastly in the charges. It decreased from the initial 13 billion yuan to 260 million yuan. The public prosecution department put forward three malpractices: a), in April 2003, Guan diverted 30 million yuan to invest into Heilongjiang Sida Investment Co., Ltd run by his younger brother Guan Guoxing; b), in 2003 he diverted 31 million yuan to invest into his elder brother’s company; and c), in 2004 he diverted 200 million yuan to invest into his younger brother’s company again.