Having secured an early release from prison, Zhou Zhengyi, once called the richest man in Shanghai, is facing another trial for giving bribes and faking VAT receipts.

Zhou, 46, has been charged with using his companies to bribe government officials and workers to forge VAT receipts, giving bribes to get better treatment during his previous imprisonment and embezzlement, Caijing Magazine said.

The trial opened at the Shanghai No 2 Intermediate People's Court and is expected to last until the end of the week.

Zhou made a name for himself in 1997 and 1999, when he purchased two luxury apartments in Hong Kong for HK$62 million and HK$86 million.

In 2002, he was named the 11th richest man in the country by Forbes Magazine.

A year later, he was arrested and charged for fraud and stock market manipulation. He was imprisoned and released last year. Five months later, he was arrested again.

According to the Shanghai Prosecutors' Office, it was the investigation into the social security fund scandal, involving Shanghai's former Party secretary Chen Liangyu, which led to Zhou's arrest.

Investigations by the city's security department found Zhou used more than 10 companies, which he either owned or had a stake in, to forge VAT receipts to get loans from banks.

He is also accused of embezzling more than 200 million yuan from Daying Modern Agriculture Co Ltd and giving bribes during his futures trading endeavors and while he was in prison.

He is also said to have bribed four prison officials and an official's wife, who in August, were sentenced to jail terms by the Shanghai High People's Court. The court said the officials used their positions to offer special care to Zhou and they also made a false report, which helped secure his early release.

(China Daily October 25, 2007)