ZHANG RONGKUN, a key figure in Shanghai's pension fund scandal, was sentenced to 19 years in prison and had 1.6 billion yuan (US$229 million) in assets confiscated by a Jilin court, Caijing Magazine reported on its Web site yesterday.

Zhang, a Suzhou native, was charged with misappropriating billions of yuan in state assets by bribing senior officials. He told the Songyuan Intermediate People's court he would appeal.

Shanghai's biggest financial scandal since economic reforms began involved the misappropriation of 3.7 billion yuan of the city's pension funds, including 3.45 billion yuan in principal and 250 million yuan in interest. A total of 25 senior government officials and corporate executives have been or will be tried in courts in Shanghai, Jilin Province and Anhui Province for their involvement. The scandal eventually brought down former Shanghai Party chief Chen Liangyu.

The court found Zhang and his companies guilty of bribing officials, company executives, manipulating stocks prices, fraudulent bond issues and illegal withdrawal of capital contributions.

Zhang's two companies were fined with a total of almost 300 million yuan while 1.3 billion yuan in assets was confiscated, the report said.

Zhang and his three subordinates appeared at the court at about 8 a.m. Zhang's wife, who arrived Sunday in Songyuan City, Liaoning Province, was not allowed to enter the court.