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HONG KONG (AP) — A Chinese court sentenced Chinese property tycoon Hui Ka Yan to life in prison for financial crimes linked to the collapse of his Evergrande real estate group, once the world’s most heavily indebted developer.

The decision marks a milestone in Evergrande’s saga after it defaulted on more than $300 billion in liabilities when Chinese authorities cracked down on excessive borrowing in the real estate industry in 2020. That triggered a crunch among many developers and brought on a downturn in the property market that has weighed on the broader economy ever since.

The Shenzhen Intermediate People’s Court said Thursday it convicted 67-year-old Hui, who founded Evergrande, of engaging in large-scale financial fraud in inflating the group’s assets and concealing its liabilities.

In a statement, the court said Hui, also known as Xu Jiayin, abused his position in orchestrating fraud and misappropriating company assets.

Evergrande group was fined 8.82 billion yuan ($1.31 billion) and Evergrande Real Estate Group was fined 7 billion yuan ($1.04 billion), the court said.

“The amount involved is exceptionally large, the circumstances are particularly egregious, and extraordinarily heavy economic losses have been caused,” the statement said. “The harm to society is extremely serious. Therefore, severe punishment should be given in accordance with the law.”

Hui’s sons, Xu Tenghe and Xu Zhijian, were also sentenced alongside senior Evergrande executives and others linked to the group on charges including illegally taking public deposits, fundraising fraud and the illegal use of funds, China’s official Xinhua News Agency said. A total of more than 50 individuals got prison terms of between 22 months and 18 years, it said without providing a breakdown of sentencing details.

A photo of Hui’s courtroom appearance released by the Shenzhen court on Thursday showed an aged Hui, who used to be a high-profile figure but had long been out of public view, wearing a navy blue shirt standing between two uniformed officers behind a sign that read “defendant” in Chinese.

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Hui pleaded guilty in April to various charges including illegal absorption of public deposits, fraud and bribery after he was detained in China.

China Evergrande was founded in 1996 as China’s housing boom was taking off. It defaulted on its debts in 2021 and was ordered to liquidate its assets. The broader downturn in China’s massive property sector that ensued has pulled home prices down 20% or more since 2021.

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Authorities in Hong Kong and mainland China earlier said their investigations found Evergrande had manipulated its financial data using tactics such as prematurely booking revenue from property sales before completion and delivery of the apartments to buyers. Revenues were overstated by roughly $80 billion over 2019 and 2020, they said.

Hui was fined 47 million yuan ($6.5 million) in 2024 and banned from China’s securities markets for life by the China Securities Regulatory Commission over inflating company financial results, among other issues.

Once reported to be China’s richest man, Hui used to own the football club Guangzhou Evergrande. At one point, he and his companies were involved in investing in and building theme parks and electric vehicles.

His story was one of rags-to-riches. Born in 1958 into a rural family in central China’s Henan province, he worked in the steel industry in the 1980s before establishing Evergrande, which then prospered during China’s housing market boom. He was one of many businessmen who have also gained political influence by joining a major advisory organization, the Chinese People’s Political Consultative Conference.

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Associated Press writer Huizhong Wu in Bangkok contributed to this report.