Xin Lang Cai Jing·2025-05-06 16:31Core Viewpoint - The former CEO of Red Star Macalline, Gao Shuang, was sentenced to three years in prison (with a five-year probation) for embezzlement of company funds through inflated service fees, highlighting issues of corporate governance and accountability in the company [1][2]. Group 1: Case Background - Gao Shuang was responsible for foreign investment at Red Star Macalline and was involved in a $1 billion investment agreement with the Chongqing Banan District government [1][3]. - The case dates back to 2021 when Gao Shuang conspired with colleagues to inflate service fees paid to an intermediary, resulting in significant financial misconduct [2][3]. Group 2: Financial Misconduct Details - Gao Shuang and his accomplices agreed to pay an intermediary 13% of the investment amount as a service fee, totaling $3.9 million, with 3% ($900,000) being returned to them [2][3]. - Gao Shuang received 70% of the returned amount, totaling approximately 3.49 million yuan after deductions [3][4]. Group 3: Legal Proceedings - The court found that Gao Shuang violated his duty of loyalty to the company and engaged in collusion to misappropriate funds, constituting embezzlement [2][3]. - Despite his defense claiming that he had approval for the additional service fee, the court determined that there was no valid consent from the company's chairman [2][3]. Group 4: Sentencing and Aftermath - Gao Shuang was arrested on May 24, 2023, and later cooperated with authorities, which contributed to a lighter sentence [5][6]. - The court's decision to impose a lighter penalty was influenced by Gao Shuang's confession and full restitution of the embezzled funds [2][6].