Chinese tycoons luxury prison in the sky shows the rich can make up the rules
LONDON The arrested Chinese property tycoon Zhang Li has a novel way to avoid a London jail lock himself in his own luxury tower block.
While Zhang, the co-founder of Guangzhou R&F Properties, prepares to fight his extradition to the US on bribery charges, his lawyers were working hard to get him out of a London prison and on bail this week.
Not only did they offer the joint-highest security that Britains courts have ever accepted of 15 million (S$21.5 million), but the lawyers said that as a condition he would be confined to a 5-bedroom penthouse apartment on the 43rd floor of an R&F-owned tower by the River Thames.
Guarded by ex-military personnel on 12-hour shifts, one operative told a judge that he planned to replicate the security measures of a prison on the property developer. That kind of protection doesnt come cheap at 200,000 a month, and all paid for by Zhang himself.
The highly unusual measures highlight the extent to which the wealthiest people can construct their own options within a faltering British justice system that wouldnt be available to anyone else. The number of prisoners waiting for their trial in England and Wales has soared to a 14-year high. Two-tiered
A luxury apartment is clearly going to be much nicer than prison, Tom Smith, a professor in law at the University of the West of England, said. That certainly suggests a two-tiered system that says if you have means, you can buy your freedom.
The bail conditions were disclosed at a court hearing, where lawyers acting for the US government warned that Zhang was a potential flight-risk, saying that the tycoon had the resources and ability to flee.
Anyone else considered to be as risky would simply be remanded in custody, Dr Smith said.
Zhang is to be confined at one of R&Fs high-rise blocks in Londons Nine Elms district, one of dozens of high-priced apartment projects packed into the narrow strip of land along the river where sales have stagnated during the pandemic.
Zhangs lawyers declined to comment.
The firm bought the UK project from another Chinese developer that ran into trouble in 2018 only to see it stall again at the start of this year. It got a rescue loan from a group of private equity firms in the summer.
Still, even as the torrent of capital that once flowed to London from China dries up, R&F is continuing to market properties in the district. A one-bedroom apartment on the second floor of its Thames City tower was on sale for over 1.1 million, according to marketing material seen by Bloomberg. A one-bedroom apartment on the second floor of its Thames City tower was on sale for over 1.1 million PHOTO: THAMES CITY Zhang was arrested on Nov 30 at Londons Heathrow Airport on a flight from Singapore, according to a filing from the lawyers for the US. Hes wanted over allegations that he provided kickbacks and funds to San Francisco officials to win permits for construction.
Zhang then paid for accommodation and gifts when the official travelled to China on vacation, the US alleges. The total bribes paid are estimated at between US$40,000 and US$70,000.
R&F said earlier on its official WeChat account that it planned to fight what it called false allegations that Zhang was charged with bribery for hosting a dinner in China for a former public affairs executive in San Francisco and providing him with hotel accommodation. More On This Topic China's super rich see fortunes plunge as economy slows 'Millionaire's visa' aimed at rich Chinese faces axe in Australia The US had opposed bail and warned that the private security company had little to no obligations to the court. But Judge John Zani disagreed, telling the lawyers that he intended to grant bail while Zhang fights his case.
That will be months away. In the meantime Zhang will be in his apartment. The only time hes allowed out will be to go to court, handcuffed to a security guard.
Should the 69-year-old be sent to the US and is found guilty he faces as long as 20 years in prison.BLOOMBERG More On This Topic Where Asia's rich are putting their cash as global risks grow What has changed about the wealthy