Excerpt from CNN Money
The Chinese government has seized control of a deal-hungry insurance firm that owns major assets in the U.S. including the Waldorf Astoria, and is prosecuting the company's chairman.
China's insurance regulator said Friday that it had taken control of Anbang Insurance for one year. The Chinese firm is best known for its ambitious deal-making efforts overseas, including the $1.95 billion purchase of the Waldorf Astoria, a failed $14 billion bid for the Starwood hotel chain, and unsuccessful talks with the Kushner family business over a Manhattan office tower.
The China Insurance Regulatory Commission said in a series of statements that Anbang Chairman Wu Xiaohui has been removed from his post and is being prosecuted for "economic crimes."
A statement from Shanghai prosecutors carried by Chinese state media said Wu had been indicted for fraudulent fund-raising and improperly taking company assets.
The insurance regulator said the decision to put Anbang under government control was because of "illegal management and operation activities" that could "endanger" its ability to stay in business. It didn't specify what those activities were.
The crackdown on the company follows an investigation that has been running since June, according to the statement. That's when Wu was reported to have been detained by authorities.
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