Yu Zhifei, the former boss of Formula 1 motor racing in China, was found guilty of embezzling public funds on Monday by the Wuhu Intermediate People's Court.
The local prosecutor said Yu had "embezzled large amounts of money, and should bear criminal responsibility for professional embezzlement".
Yu's troubles started in 1997, when he served as the legal representative of the State-owned Shenhua football club.
He purchased a 172-sq-m apartment from Shanghai Wenhui Estate Developing Company through an agent for 2.43 million yuan ($320,000).
However, concerned that buying such an expensive residence would hurt his reputation, Yu convinced the seller to list the sales price as 1.18 million yuan in the contract. The Shenhua Group paid the 1.18 million.
Before 1999, public servants and employees of State-owned enterprises were given houses or compensated for purchases.
When the real estate company put pressure on Yu to pay off the difference, he forged a bill and withdrew 800,000 yuan from the Shenhua club.
Two years later Yu forged another bill and withdrew another 250,000 yuan to help pay for the house.
According to the prosecutor, the house was bought for Yu and should be regarded a personal purchase. According to Shenhua, officials could only accept subsidies for housing measuring 80 sq m or less.
Yu's case was originally scheduled to be heard on August 16, but was postponed because the defendant wanted to call witnesses.
Yu, born in Shanghai in September 1952, became famous for his success in the football business. He took over the reins of Shanghai International Circuit Management Development Co in 2001.
Yu is also one of the senior officials and business heads who were implicated in the social security fund scandal, which led to the stepdown of Shanghai's former Party chief, Chen Liangyu.
Source: China Daily
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