The ex-chairman of fast-food chain Kungfu has lost his appeal in an embezzlement case that sources close to the company say was the result of a dispute involving family members
June 16, 2014 Leave a comment
06.09.2014 18:54
Ex-Boss of Fast-Food Chain Loses Appeal of Embezzlement Conviction
Court upholds verdict against Cai Dabiao in case sources close to Kungfu Catering say was result of power struggle
By staff reporter Wang Jing
(Beijing) – The ex-chairman of fast-food chain Kungfu Catering Management Co. Ltd. has lost his appeal in an embezzlement case that sources close to the company say was the result of a dispute involving family members.
The Guangzhou Intermediate People’s Court upheld the conviction of Cai Dabiao on June 6. The southern city’s Tianhe District Court had sentenced Cai to 14 years in prison on December 13 for misappropriation of funds and embezzlement. He will also have 1 million yuan’s worth of personal assets confiscated.
The case has been in the public eye because sources close to the firm said it was triggered by a power struggle involving family members linked to the company. The conflict started when Cai and his wife divorced in 2006, the sources say. The ex-wife’s brother is Pan Yuhai, who with Cai co-founded Kungfu Catering.
The Chinese fast-food chain owns more than 400 restaurants across China.
The legal fight started in August 2010 when Pan’s wife, Dou Xiaolei, told police about wrongdoing involving Cai and several other executives at Kungfu Catering. She told the Economic Crime Investigation Squad of the Guangzhou Public Security Bureau that Cai and other executives embezzled 59.6 million yuan from a company bank account.
Cai was detained in March 2011, and police seized the company’s corporate seals, account books and licenses from his office. A relative of Cai’s said that a short time later police gave the company’s core business documents to Pan. He has acted as the company’s acting chairman ever since.
Cai’s younger brother, Cai Liangbiao; assistant, Ding Weiqin; brother-in-law, Li Yueyi; and a former company vice president, Hong Rengang; were also detained. They have been convicted of being accessories to a crime.
Cai’s relatives say Pan used a relationship with police to back his efforts to oust Cai. Some of the other defendants in the case testified they were mistreated during interrogations.
The appeal hearing was held in May and lasted four days. People who attended it said Cai’s lawyers accused the police of intervening in what they called a basic, civil law financial dispute.
Cai said at the hearing that he had been “unfairly sentenced,” one person who attended it said.
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