Hong Kong businessman Luo Jianxin, whose net worth exceeds 100 million yuan, said that he was physically and mentally exhausted because of this case, so he filed for state compensation. The Express reported that Luo Jianxin, a Hong Kong businessman worth over 1 billion yuan, was accused of contract fraud. Although the Guangdong Higher People's Court finally acquitted him, he had been severely affected by the "fraudster" label, even causing him to face many difficulties in doing business. It was learned yesterday that Luo Jianxin had filed for a total state compensation of more than 20 million yuan from the Guangzhou Procuratorate. Among them, 2 million yuan was for mental distress compensation.
In April 2003, Luo Jianxin, a 54-year-old billionaire Hong Kong businessman, was about to cross the Huanggang Port in Shenzhen to return to Hong Kong when he was suddenly arrested by the police on charges of allegedly defrauding 20 million yuan through a contract scam. He was detained for 59 days afterward.
Luo Jianxin's family paid 21.2 million yuan as "security deposit" to the police, which later became known as "returning ill-gotten gains." Luo Jianxin claimed that for nearly eight years after this incident, he continued to be labeled as a "fraudster." As a result, banks were unwilling to grant loans, business partners were hard to find, previously signed contracts were terminated, ongoing projects were halted, and he had to sell land at low prices to pay taxes and debts just to keep his company afloat.
After investigation, the court found that Luo Jianxin was born in Dongguan and is a resident of Hong Kong. He served as the chairman of Hong Kong-based Zhongchang Industry Co., Ltd. (hereinafter referred to as Zhongchang Company) and was once a member of the ninth session of the Dongguan Municipal Committee of the Chinese People's Political Consultative Conference. Since 1992, Zhongchang Company had conducted business with China National Electronics Import & Export Corporation South China Branch (hereinafter referred to as South China Corporation) and Guangzhou Machinery Equipment Import & Export Corporation (hereinafter referred to as Machinery Corporation).
In 2003, Luo Jianxin was arrested on suspicion of defrauding 20 million yuan through a contract scam. The prosecution believed that Zhongchang Company and Luo Jianxin used partial contract execution to deceive the two companies' assets. They also avoided returning the goods payment by changing the company name and applying for bankruptcy, suspected of contract fraud.
In September 2008, the Guangzhou Intermediate People's Court ruled Luo Jianxin not guilty in the first instance trial. On December 17 last year, the Guangdong Higher People's Court upheld the original verdict in the final appeal.
Recently, Luo Jianxin has made four requests for state compensation. "I was wrongly detained for 57 days, with daily compensation of about 125 yuan, totaling 7,149.5 yuan," Luo Jianxin said. He argued that his family paid 21.2 million yuan to the public security organs, which was an illegal seizure and requested compensation for capital loss of over 9.4 million yuan. Additionally, on January 25 this year, the pre-trial supervision detachment of the Guangzhou Public Security Bureau returned 10.7 million yuan, resulting in property loss of 10.5 million yuan.
For the last item, Luo Jianxin stated that this case caused him long-term severe insomnia, often requiring medication and psychological treatment to maintain health. Therefore, he filed for 2 million yuan in damages for mental distress.