Mr. and Mrs. Zhang Jiahui, the richest judge, who amassed money crazily: total assets exceeded 20 billion yuan

category:Finance
 Mr. and Mrs. Zhang Jiahui, the richest judge, who amassed money crazily: total assets exceeded 20 billion yuan


Zhang Jiahui and Liu Yuansheng. Painting/Dong Hanwen Production/Wang Painting

China News Weekly, No. 909, July 29, 2009

In 1992, a young couple left Wanxian County, Sichuan (now Wanzhou District, Chongqing) and came to Hainan 1500 kilometers away.

According to the old people of Hainan Intermediate Court, the young couple was in great straits when they first arrived in Hainan, and their suitcases were still woven with rattan. To this end, the hospital organized donations and called on everyone to help them.

But today, they are worth more than ten billion dollars.

His wife, Zhang Jiahui-guan, was named the richest judge in Chinas court system and his husband, Liu Yuansheng, was a real controller of many companies and a member of the Standing Committee of the Political Consultative Conference of Hainan Province.

According to reports, there are at least 35 enterprises controlled by Zhang Jiahui and Liu Yuansheng, involving real estate development, property management, hotels, tourism, commerce, film and television, finance, liquor industry, medical treatment, consulting services and other fields, with total assets exceeding 20 billion yuan.

With Zhang Jiahui being examined and investigated by the Disciplinary Commission of Hainan Province on May 31 and Liu Yuansheng being investigated by the public security organs, the hidden business empire behind the couple is gradually emerging.

China News Weekly has learned that auditors will be hired to audit the assets of Zhang Jiahui and his wife. At the same time, the suspense cases that Zhang Jiahui had been working as deputy court of Hainan High Court for a long time were reviewed.

Landing in Hainan

According to Gao Jingzhong, a lawyer at Chongqing Sotong Law Firm, elder sister Zhang Jiahui committed suicide after her marriage because of family conflicts. She believed that elder sister was unfair and changed to law after being touched.

At Southwest University of Political Science and Law, Zhang Jiahui met Liu Yuansheng, one year younger than her. Liu Yuansheng is a native of Daozhen County, Guizhou Province, with a poor family. In January 1990, they registered for marriage at Shapingba Civil Affairs Bureau, Chongqing. After graduation, the couple were assigned to work together in the Peoples Court of Wanxian County, Sichuan Province. At that time, they were the only two graduate students in Wanxian Court.

In 1992, Mr. and Mrs. Zhang Jiahui were introduced to Haikou by the Hainan Intermediate Court as highly educated talents. Zhang Jiahui was an assistant judge of the Min Court and Liu Yuansheng was a researcher in the research room of the Institute.

After arriving in Hainan, Liu Yuansheng soon showed an urgent need to improve the economic situation. Previously, it was reported that Liu Yuansheng spent almost all his spare time running a volcanic rock mine in Haikou City. People familiar with the situation told China News Weekly that the volcanic rock mine belonged to a leader of Liu Yuansheng. When the leader was inconvenient to come out, he was asked to manage it on his behalf.

In 1995, Liu Yuansheng was persuaded to quit because of the quarry business dispute and resigned to Shanghai. After leaving Hainan Intermediate Court, Liu Yuansheng and a lawyer set up a consulting company.

Liu Yuansheng began to work as a lawyer after he got his lawyer qualification certificate in 1997. According to Gao Jingzhong, the first case Liu Yuansheng acted as an agent was a strong real estate agent. Many lawyers dared not answer, but Liu Yuansheng was not afraid, and finally won the lawsuit. This made Liu Yuansheng famous in World War I, and with Zhang Jiahui working in the courts, he gradually became a local lawyers shy opponent.

After the improvement of lawyer business, Liu Yuansheng sent his brother Liu Yishan and his wife and brother Zhang Jiaping to Southwest University of Political Science and Law to study. After obtaining the lawyers qualification certificate, Liu Yishan worked as a lawyer in Wanzhou, Chongqing for a period of time, and later became Liu Yuanshengs right assistant in business. Zhang Jiaping, with a flat academic background, was funded by Liu Yuansheng around 1998 and opened a dance hall in Wanzhou. According to local Yan Zongwen, this is Liu Yuanshengs first business in Wanzhou.

Chen Zinan, a relative of Fan Qiming, told China News Weekly that Fan Qimings parents were eager to save their children. They successively gave Zhang Jiahui and his wife a million-dollar villa, a 1.6 million-dollar Ivory statue and 200,000 yuan in cash.

Finally, Fan Qiming was sentenced to death suspension. Several years later, Xiao Jieqing, the presiding judge of the case, was imprisoned for the crime. A handwritten note provided by Xiao Jieqing in prison indicated that during Fan Qimings trial, no one had ever sought to intercede with him.

This led Fan Jiahui to believe that he had been cheated by Zhang Jiahui and his wife, and asked for property many times. After that, he found the leadership of Hainan Intermediate Court to seek a solution. This matter has aroused a lot of discussion in the courtyard, but to the outside world, it has not affected Zhang Jiahuis official career.

Initial involvement in real estate

Let Zhang Jiahui and his wife complete the original capital accumulation, is the real estate project Shuiyun Tian.

In May 2002, Liu Yuansheng registered Hainan Weishe Real Estate Development Co., Ltd. in Haikou. At that time in Hainan, the real estate bubble has come to an end, and house prices have also dropped to the lowest level. Liu Yuansheng has seen business opportunities in the unfinished buildings across the street.

After Weishe Company got the land, it developed residential projects on it, named Shuiyun Tian. Since then, Shuiyun Tian project has been expanding. At present, the project has been completed in three phases, and two commercial and residential buildings with a total area of about 50,000 square meters in the fourth phase are still under construction.

In 2007, housing prices in Hainan gradually warmed up. Two years later, Hainan ushered in the opportunity to build an international tourism island, and housing prices began to rise rapidly. Relying on the rich returns brought by the Shuiyun Tian project, Liu Yuansheng began to enter the real estate industry formally.

Several people familiar with the situation told China News Weekly that Liu Yuansheng had a strong personality and acted arbitrarily, often resorting to violence in the process of developing the Shuiyun Tian project. For example, when the second phase of the project started, there was a conflict with the developer of the adjacent land. He ordered his men to use violence to force the latter to give up the land.

Nowadays, Shuiyun Tian has become the base of Zhang Jiahuis business relationship network.

There is a lakeside club in the cloudy sky. Outside the clubhouse, the lake is surrounded by green trees; the restaurant and entertainment facilities are all available in the clubhouse, and there is an open-air swimming pool, which is very luxurious. According to people familiar with the situation, Zhang Jiahui and his wife often hold banquets in the clubhouse to attract politicians and businessmen.

On the other hand, Shuiyun Tian is also an important starting point for Zhang Jiahui and his wife to expand their business territory, which has become the incubator of many enterprises under their name.

Industry and commerce data show that Hainan Huajun Agricultural Technology Co., Ltd., Hainan Huajun Huimin Commercial and Trade Co., Ltd., Hainan Huajun Commercial and Trade Co., Ltd., Hainan Huajun Hospital Investment Services Co., Ltd. and other enterprises are registered in Shuiyun Tian Community Club, 56 Qiuhai Avenue, Haikou City.

Crazy money-gathering

According to Chen Zinan, the source, and Li Fuhua, another informant and Chongqing businessman, the business empire controlled by Zhang Jiahui and his wife involved 35 companies, including 3 overseas companies, 5 domestic companies directly held by Liu Yuansheng, and 27 by their relatives.

Among these enterprises, Hainan Tomorrow Fragrance Travel Co., Ltd. (hereinafter referred to as Tomorrow Fragrance Co.) and Chongqing Reiss Real Estate Development Co., Ltd. (hereinafter referred to as Reiss Real Estate) are particularly attractive because of their huge assets.

Several informants confirmed that Liu Yuansheng had repeatedly boasted that Tomorrow Incense had the largest golf course in Hainan and would develop high-end villas, private clubs, yacht terminals and top hotels for the whole world. It is reported that the stadium is located in Puqian Town, Wenchang City, the northernmost tip of Hainan Island, with its back to Qixing Ridge and a two-kilometer-long bay, covering an area of nearly 2,000 mu. At present, the stadium is worth 5 million yuan per mu, and the whole project is valued at more than 10 billion yuan.

According to the investigation, as early as before Zhang Jiahui and his wife arrived in Hainan in 1992, Ming Rixiang Company had been established, and its shareholders were composed of Japan National Corporation Ming Rixiang Country Club and Haikou Jiayu Industry and Trade Co., Ltd. Later, the latter withdrew, and six enterprises such as Taiwan Acer Construction Company and Zhonghua Construction Co., Ltd. entered the board.

But for unknown reasons, the Ming Rixiang Golf Course project has stagnated since 1995.

From 2007 to 2010, the shareholding of Tomorrow Incense Company changed. A company named Huarong Co., Ltd. expanded its shareholding for many times until it became the sole shareholder of the company.

Huarong Limited is registered in Hong Kong. According to the registration information of the Hong Kong Registry, on February 27, 2004, a person named Xiao Hong established Huarong Limited in Hong Kong. On June 4, 2008, Liu Yuansheng became the director of Huarong Co., Ltd. On the same day, Xiao Hongyou, the former director of the company, resigned.

According to a person familiar with the situation, Xiao Hongyou was the lawyer who co-founded a consulting company with Liu Yuansheng in his early years.

On March 3, 2008, the Hainan Intermediate Court in the Wenchang City Construction Bureau and Hainan Tomorrow Fragrance Travel Industry Co., Ltd. revoke administrative licensing decision and cancellation decision dispute appeal administrative judgment said that the Wenchang City Construction Bureau revoked on May 18, 2007, before the two temporary certificates of construction project planning licensing issued to Tomorrow Fragrance Co., Ltd., Tomorrow Fragrance Gong The Department refused to accept the decision and filed a lawsuit with the Hainan Intermediate Court, requesting the court to order Wenchang City Construction Bureau to restore the two temporary permits issued by it.

Ultimately, Tomorrow incense won the lawsuit.

In this case, Liu Yuansheng appeared as general manager of Tomorrow Incense Company and was the court agent of the company.

According to China Business Daily, citing unconfirmed information, the project was suspended and the Hainan Provincial Peoples Government wanted to take it back. However, Liu Yuansheng took advantage of court resources to pass a lawsuit and got it in his hands for only a few million yuan.

In the process of controlling Reiss Real Estate, Liu Yuansheng adopted the same way of nibbling stock rights and ultimately holding shares.

Li Shanjie, a Wanzhou resident in Chongqing, told China News Weekly that in 2009, he and Wu Changjiang, former president of Rex Lighting Holding Co., Ltd., jointly established Rex Real Estate, in which Li Shanjie holds 40%, Wu Ai, wife of Wu Changjiang holds 60%, and Li Shanjie is the executive director and legal representative of the company.

On November 22, 2010, Reiss Real Estate took over two major plots of land at the core of Wanzhou City at a price of 18,991,863,000 yuan, covering an area of 9,1489 hectares, or 137 mu, with a land price of about 1.38 million yuan per mu.

In 2011, Wu Changjiang lost 470 million yuan in Macau gambling, which became a turning point for Rex Real Estate.

In October of that year, Li Shanjie received many phone calls from Wu Changjiang. In the phone call, Wu Changjiang said that he had borrowed 400 million yuan from Guizhou people and that the other side was pressing for debt. Wu asked Li Shanjie to sell the land he had acquired and pay off his debts, but all of them were refused by Li Shanjie.

It is noteworthy that this Mortgage Contract includes a content: if the Loan Contract signed by Party A (Blue Sky) and Weishe Company is confirmed to be invalid by the relevant departments, it does not affect the effectiveness of the shareholders of this contract and the responsibility of Party B (Reiss Real Estate) to perform the guarantee.

Since then, the Wanzhou Land Bureau has registered the mortgage.

Li Shanjie learnt the news and took prompt measures: accusing Wu Changjiang, Wu Ai and Mu Chengbin of fraud to Wanzhou District Public Security Bureau; accusing Wanzhou District Industrial and Commercial Bureau of illegal alteration of industrial and commercial information; instituting civil lawsuits to Wanzhou District Court, demanding the cancellation of shareholder agreements signed privately by Wu Changjiang; and instituting administrative lawsuits to Wanzhou District Land and Resources Bureau. Request revocation of mortgage registration.

But shortly after reporting the case, the head of the Economic Investigation Detachment of Wanzhou District Public Security Bureau found Li Shanjie and suggested that he withdraw the case, saying that the other party has a strong background, if you do not talk to him, the land and equity may not be preserved. Li Shanjie told China News Weekly that only then did he know that the mysterious Guizhou man who lent money to Wu Changjiang was Liu Yuansheng.

Subsequently, Li Shanjie flew to Hainan to compromise with Liu Yuansheng. During his stay in Hainan, Liu Yuansheng and his wife also took him to visit Tomorrow Fragrance Golf Course.

In April 2012, Reiss Real Estate held a shareholdersmeeting. Xiao Hongyou, a partner of Liu Yuansheng, came forward and signed an agreement with Li Shanjie. Li Shanjie transferred 10% of his shares to Wu Ai. Wu Ai transferred 60% of his shares to Liu Yuansheng together with 10% of his shares. So far, Liu Yuansheng officially controlled Rex Real Estate and became a major shareholder of 70%.

However, Liu Yuansheng was not satisfied and asked Li Shanjie to transfer the remaining shares to him. To this end, the two sides fought for years.

In March 2018, Liu Yuansheng hired dozens of security guards to force Li Shanjies team out of the company. Finally, Li Shanjie had to agree to transfer the remaining 30% of the shares to Liu Yuansheng at a price of 110 million yuan.

However, in March 2019, Li Shanjie did not receive the agreed second sum of money, but waited for an arbitration notice, Liu Yuansheng, to submit an arbitration application to the Hainan Arbitration Commission, demanding the cancellation of the previous equity transfer agreement and the recovery of 30 million yuan already paid.

Li Shanjie suspected that the assets of Reiss Real Estate had been transferred by Liu Yuansheng, leaving only an empty shell, so he entrusted lawyer Gao Zhongzhong to investigate Liu Yuanshengs assets.

Liu Yuansheng has provided Li Shanjie with a list of 197 million yuan of loans, which details the list of companies that borrowed money from Reiss Real Estate from June 2012 to December 2015.

This list of companies has become an important clue for Gao Zhongzhong to investigate the business empire behind Liu Yuansheng. According to Gao Jingzhongs preliminary statistics, 35 enterprises directly or indirectly controlled by Mr. and Mrs. Liu Yuansheng are valued at more than 20 billion yuan.

After Liu Yuansheng was investigated, Hainan public security officers went to Wanzhou to find out about Li Shanjie. According to public security officials, the investigation team will employ auditors to verify the huge wealth of Zhang Jiahui and his wife.

Gao Jingzhongs survey found that, except for a few real-name registration enterprises, the vast majority of enterprises Zhang Jiahui and his wife held indirectly in the name of relatives and friends. This covert way of holding, so that they often occupy a favorable position in commercial litigation. The law doctor couple even deliberately instructed their company to inform each other in a false lawsuit (or arbitration) in order to achieve the purpose of swallowing other peoples assets or evading legal liability.

On September 23, 2011, Liu Yuansheng borrowed 30 million yuan from Wenzhous Lu Yi and Lin Maoguang at a monthly interest of 1.5 million yuan, guaranteed by Huang Jianming, director of Tomorrow Fragrance Company. According to Liu Yuanshengs request, the money was transferred from Yangpu Xinyou Industrial Co., Ltd. to the account of Wenzhou Wanshun Botanical Vegetables Co., Ltd. under the name of Lu Yis relative Chen Zongfa, and then transferred from Chen Zongfa to Lu Yi.

In October 2013, Liu Yuansheng suddenly reported Wanshun Company and Huang Jianming to the Peoples Court of Wuchuan City, Zhanjiang City, Guangdong Province, saying that Wanshun Company refused to repay. In the same month, the Peoples Court of Wuchuan seized more than 10,000 square meters of land and bank deposits of Wanshun Company.

Chen Zongfa told China News Weekly that he had never dealt with Liu Yuansheng and Huang Jianming before. After being prosecuted, he remembered that he had helped Lu Yi transfer the money. He raised an objection to jurisdiction and transferred the case to Wenzhou Intermediate Peoples Court for trial. The first instance of Wenzhou Intermediate Peoples Court and the second instance of Zhejiang Provincial Higher Peoples Court rejected Liu Yuanshengs suit because there is no loan relationship between Liu Yuansheng and Wanshun Company, and the main creditors rights guaranteed by Huang Jianming have not really occurred.

After losing the lawsuit, Liu Yuansheng and Huang Jianming submitted arbitration to Zhanjiang International Arbitration Court. The result of the ruling was that Tomorrow incense paid Yangpu Xinyou Industrial Co., Ltd. 32 million yuan.

In August 2016, Huang Jianming filed another lawsuit against Lu Yihe and Wanshun Company in Wuchuan Peoples Court. In the absence of the two defendants, Wuchuan City Court held a trial in absentia. It ruled that Lu Yi paid the plaintiff Huang Jianming 32 million yuan, and Wanshun Company was liable for joint and several liquidation within the limit of 30 million yuan.

Two years later, with Gao Jingzhongs reminder, Chen Zongfa noticed that the arbitrator of Zhanjiang International Arbitration Court was Zheng Kaijie, a lawyer of Guangdong Bog Law Firm who acted as the agent of Liu Yuansheng and Huang Jianming.

According to Chen Zongfa, the real purpose of Liu Yuanshengs loan and the false arbitration with Huang Jianming is to obtain Wanshuns assets.

This is the same as in the case of Reiss Real Estate, Liu Yuansheng let Wu Changjiang borrow 200 million yuan from Weishe Company on the basis of the land of Reiss Real Estate as collateral.

Another false lawsuit Gao Chunzhong found involved the assignment of Shuiyun Tian project land by Weishe Company in its early years. According to the contract of that year, after the transfer of land, Weishe Company has to undertake the obligation of repayment of mortgage debt. However, Weishe Company has been delayed to date.

In December 2009, Wuhan transferred this part of its creditors rights to Weishe Company because of the tossing and turning of Start Investment Company (hereinafter referred to as Start Company). Because Weishe refused to pay its debts, Start applied to Changsha Intermediate Peoples Court for the seizure of 7432.28 square meters of land under Weishes name in April 2011.

However, Liu Yuansheng, Zhang Jiahui and others, as outsiders of the case, lodged objections to the Changsha Intermediate Peoples Court to lift the seizure of land on the ground that all their houses were located on the seized land and that the purchase of houses was prior.

In addition to Mr. and Mrs. Zhang Jiahui, the execution objections were raised by Hainan Dinas Investment Co., Ltd., Yangpu Enwei Trading Co., Ltd., Yangpu Xinyou Industrial Co., Ltd., and Hainan Huiyuan Cultural Media Co., Ltd. The actual owners of these companies were Mr. and Mrs. Zhang Jiahui.

It was not until Zhang Jiahuis case was exposed that Wei Xiaolan, chairman of Start Company, knew that the outsiders who raised the objection to execution and the owners of Weishe Company were actually a group of people. To her surprise, Zhang Jiahui and his wife had arranged ahead of schedule as early as 2006 to avoid debt.

Wei Xiaolan told China News Weekly that in April 2006, Hainan Dinas Investment Co., Ltd., indirectly held by Zhang Jiahui and his wife, signed a contract for the sale of houses with Weishe Co., Ltd. The latter will sell more than 3,000 square meters of real estate already registered under the name of the bank for 105,29420 yuan.

Later, Dinas Company could not transfer the house because of the pre-registration of the house it purchased, and reported Weishe Company to the Hainan Intermediate Court. The Hainan Intermediate Court ruled that the defendant Weishe Company used its 32135.5 square meters of land to settle the debt owed to Dinas.

In addition, in order to make the pre-registered commercial housing in the name of the former creditor ICBC separate from the developer Weishe Company to avoid being executed, Mr. and Mrs. Zhang Jiahui instructed Yangpu Xinyou Industrial Co., Ltd., Yangpu Enwei Trading Co., Ltd. and Weishe Co., Ltd. to conduct a series of dazzling false litigation or arbitration.

For example, they let Yangpu Enwei Trading Co., Ltd. arbitrate disputes with Weishe Co., Ltd. while Mou Zhenqiong, the legal representative of Yangpu Enwei Trading Co., Ltd., was Du Kaihongs aunt and sister. It is understood that Mou Zhenqiong is the wife of Liu Yishan, Liu Yuanshengs brother, and Du Kaihong is Liu Yishans aunt and uncle.

It is reported that the two suspected false lawsuits have received attention from Hainan. Zheng Kaijie and Huang Jianming have been arrested and charged.

Brothers are against each other

Judging from the cases that have been made public, the false lawsuit is Zhang Jiahui and Liu Yuanshengs usual way of dealing with economic activities and disputes, not occasionally. Liu Jun, a lawyer at Chongqing Tongan Law Firm, told China News Weekly that in another case in which he was involved, Zhang Jiahui and his wife were suspected of setting up a trap to trap the defendant. He believes that the essence of setting traps is the same as that of false litigation, which is to achieve the purpose of improper litigation by fabricating evidence.

The case mentioned by Liu Jun is the blackmail case of Yizhenwu, which brought Zhang Jiahui and his wife into public view.

Yizhenwu met Liu Yuansheng before contracting for a project at Dinas. According to Yizhenwus brother, Yishuangquan, the relationship between Yizhenwu and Liu Yuansheng was quite harmonious at the beginning of their cooperation. The two brothers were equal. Yizhenwu often attended family gatherings of Zhang Jiahui and Liu Yuansheng.

In April 2018, Yi Zhenwu sent a U-disk containing Zhang Jiahuis gambling video and Liu Yuanshengs conversation recordings to Zhang Jiahui with a 13-page long letter. In his letter, Yi Zhenwu said that Liu Yuansheng had suffered losses due to severe price reduction in the project. He was hopeless and asked Zhang Jiahui to help him from a fair stand.

Since then, Liu Yuansheng has agreed to give Yi Zhenwu 2 million yuan.

On the afternoon of May 30, 2018, Liu Yuansheng remitted 500,000 yuan to Yizhenwu three times, the last time being 17:02. At about 18 oclock, Liu Yuansheng reported the case to the police and explained in his transcript that the reason why he did not call the police until he had finished the payment was that he had not made a final decision to report the case at the last moment of the payment.

But Liu Jun believed that Liu Yuansheng had already set up a trap. One evidence is that Liu Yuansheng submitted a 5-page report and 12 documents when he reported the case. Except for the time, amount and date of payment on May 30, the rest were printed.

Liu Jun said that Liu Yuansheng could not have prepared the materials within one hour after the payment. The reasonable explanation is that he wanted to create a complete state of extortion by Yizhenwu. The amount is also exquisite. Yi Zhenwu asked for 2 million yuan, but Liu Yuansheng chose to pay 500,000 yuan when the police, the amount just reached the third level of extortion sentencing, once sitting down can be sentenced to more than 10 years of fixed-term imprisonment.

On June 14, Liu Yuansheng met again with Yizhenwu. During the conversation, Liu Yuansheng promised to pay the remaining 1.5 million yuan if Yi Zhenwu promised to write a guarantee. Subsequently, according to Liu Yuanshengs dictation, Yi Zhenwu wrote in the letter of guarantee that after receiving the remaining money, he will not use video and recording to force or extort.

After writing the letter of guarantee, Yi Zhenwu was arrested by the police waiting for him as soon as he stepped out of the gate.

Liu Jun believed that Liu Yuansheng met with Yi Zhenwu many times after reporting the case, and induced him to write a letter of guarantee, in order to sit down on the charge of extortion by Yi Zhenwu.

After the Yizhenwu case was exposed by the media, Li Fuhua, Chen Zinan and other informants began to unite to report Zhang Jiahui and Liu Yuansheng in real name. They wrote in the indictment: Zhang Jiahui and Liu Yuansheng, who set up a judicial platform and performed commercially, must be both an official and make a fortune. Over the years, they seized huge amounts of property crazily and became the richest judge in the court system in history.

After learning about the actions of Li Fuhua and others, Liu Yuansheng once sent a micro-letter to Li Fuhua, saying, I know exactly how you plan to use the news media to slander and frame me. I just want to tell you that the law is merciless, I will get justice through the law! I am confident and patient that anyone must pay the price for his own illegal activities! ____________

Statement: The manuscripts of China Newsweek are authorized in writing.

Source: Responsible Editor of China Newsweek: Zhong Qiming_NF5619