Hubei Huangshi Intermediate People’s Court has sentenced Lin Ran, former chairman of bankrupt Hubei Jiangyan Shipbuilding, to 17 years jail for fraud.
Lin Zhihua, a former director of the shipyard and son of Lin Ran, also received a sentence of four and a half years in prison for conspiring to fraud.
Lin Ran and Lin Zhihua were charged for a series of fraudulent activities in a shipbuilding deal with Wuhan Changjiang Shipping, a subsidiary of Sinotrans & CSC.
The shipyard won an order from Wuhan Changjiang Shipping for the construction of eight 6,700 dwt bulk carriers in 2012, after the two former officials of the shipyard offered fake financial documents in the bidding.
The Lins fled to avoid huge debts in 2013 without delivering a single ship in the contract and the court closed down the shipyard in the same year. They were arrested by police in 2014.
