Saturday, June 13, 2020

Carlyle Group Affiliate Yashili Sickened His Child, Sent Him to Jail

Caixin reported:

The father of a girl who became sick during a 2008 tainted milk scandal in China says he will not give up his battle for compensation.  Guo Li was jailed for five years after being accused of trying extort money from Yashili International Holdings, however, a court in China’s Guangdong province overturned his conviction.  Guo, who was exonerated after serving his full prison sentence, is now seeking compensation from the courts, the police and Yashili for a nine-year ordeal which he said has left him scarred physically and mentally.

“I feel like an ant taking on an elephant,” Guo, a former interpreter, said in a telephone interview with The Australian Financial Review in English.  “My case is unusual in China. I am pressing for the full package in terms of compensation. I was wrongly sentenced to five years in prison. I was physically and mentally harmed. My daughter is sick.”
The Carlyle Group invested in Yashili just after Chinese children were sickened and killed by tainted infant formula.  Carlyle 's 17.3% ownership came in September 2009, just after Yashili accused the father of extortion   Carlyle's due diligence would have the PEU very aware of risks.

What made Guo Li so dangerous that Yashili would use the police and legal system against him?

Guo campaigned on behalf of other parents and made headlines in China.
Mr. Li was convicted in 2010.  He spent one year in police detention and another four years in the prison system.  In 2013 The Carlyle Group sold its stake in Yashili.

Based on the offer price, Carlyle’s stake in Yashili is worth $388 million, or nearly two times its original investment in 2009.
Does Supreme's James Jebbia know the Guo Li story?  I'll venture Taylor Swift learns about Mr. Li as she continues her battle with the man filled Carlyle Group.  Many are harmed in the wake of private equity ownership.  Greed does that.  

Update 6-16-20:   The City of Missoula's bad faith lawsuit against Carlyle has been delayed due to the coronavirus pandemic.  The city's attorneys say they have evidence of Carlyle Grouo fraud and malice.  Another lawsuit comes from a Carlyle hedge fund employee.  It claims Carlyle wrongfully terminated the whistleblower after complaining the firm "allowed nearly $2 billion worth of investment funds, including teachers’ and firefighters’ pension accounts, to drain down to less than $50 million without telling the account administrators."