Businessman seeks $11m yuan for wrongful verdict

A former business owner who spent eight years in prison has filed an application with a court in North China's Hebei province for a record 69.8 million yuan ($11.2 million) in compensation for a wrongful verdict after he was found not guilty on appeal, Beijing Times reported on Thursday.

Jiao Zhanjun, who was owner of Daren Pharmaceutical Co in Anguo city, stated the compensation included the loss of his business, including the company and a hotel, and the cost to his physical and mental health. The company was one of the largest suppliers of Tongrentang, a top producer of traditional Chinese medicine in China.

The court said it can compensate Jiao only 120,000 yuan for the loss of his freedom in prison according to the law.

Jiao was detained in 2001 for suspected tax evasion and sentenced to four years in prison by the court in 2003. The sentence was changed to three years with four years' reprieve in the same year after Jiao appealed.

After eight years of appeals, another court in Hebei province ruled last year that Jiao and Daren Pharmaceutical Co were not guilty because of a lack of evidence to prove their tax evasion. The court in Baoding judged the ruling effective at the end last year.