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Lenders wary after illegal fundraisers get death penalty

By Yu Ran | China Daily | Updated: 2011-11-09 08:02

SHANGHAI - The first ever death penalty on illegal fundraising in Lishui, Zhejiang province, has sent a chill across the underground banking markets in Wenzhou, a eastern commercial hub haunted by shadow lending, and several other cities around China.

The Intermediate People's Court of Lishui on Monday sentenced three men convicted of fraud to death for illegally soliciting funds from the public. One of them, charged also with flight of capital contribution, was to be executed immediately while the other two were given a two-year reprieve.

Three others, convicted of fraudulent fundraising and illegal pooling of savings deposits, were given sentences ranging from life to three years' imprisonment.

Lenders wary after illegal fundraisers get death penalty

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