Beijing No. 1 Intermediate People's Court has sentenced eight senior managers from Price Smart Membership Shopping to prison for contract fraud and theft.
The eight senior managers, including Wu Weidong, former operation director of Beijing Price Smart Membership Shopping Enterprise Center, the chief operation officer and a CEO from Price Smart China, are reported to have been involved in RMB16.35 million worth of contract fraud and theft of RMB105 million from the company. Wu has been sentenced to life imprisonment and the other seven defendants have received prison terms ranging from 21 months to 16 years.
By collecting extra fees from suppliers and various other propaganda fees, Price Smart opened more than 40 large stores in China in seven years. But their illegal behavior was exposed in 2004, leading to this court verdict.
