Evergrande Scandal: Chinese Authorities Uncover $78 Billion Revenue Fraud

Chinese regulators have accused Evergrande and its founder of inflating revenues by $78 billion, resulting in the largest financial fraud case in mainland China's securities markets. The China Securities Regulatory Commission imposed a penalty of $580 million on Evergrande's main Chinese unit and fined the founder $6.5 million, while also barring him from the securities markets for life. The investigation revealed that the company had fabricated billions in sales, inflating net profits by 63% in 2019 and 87% in 2020. In addition to the penalties, six other executives were fined, and the former vice chairman and CEO of Evergrande Group was also banned from the nation's securities markets for life.