Defendant in the 'Royal No. 1' case accused of illegally selling 4.36 million yuan worth of tobacco

On February 6, the China News Service reported: A direct hit on the Zhengzhou "Royal No. 1" case's first public trial: the defendant is one of the shareholders.

The Zhengzhou "Royal No. 1" entertainment club's series of cases involving prostitution, which had been tried in private multiple times, was publicly heard for the first time on the 6th, with the prosecution accusing defendant Chen of illegally selling tobacco worth 4.36 million yuan.

On the afternoon of the same day, the Intermediate People's Court of Xinxiang City, Henan Province, publicly heard the case against defendant Chen for illegal business operations. Just over two hours before the trial, another case involving defendant Chen and 11 others for organizing prostitution was still being tried in private in the same court.

Since this was the first time the Zhengzhou "Royal No. 1" case was publicly tried according to law, many media and citizens came to observe the proceedings.

The Xinxiang City People's Procuratorate accused that since August 2012, defendant Chen, without a tobacco monopoly license for either the "Royal No. 1" entertainment club or personally, purchased cigarettes from his ex-wife Li (who is being handled in another case) and set the sales price for cigarettes, illegally selling tobacco at the club. By the time of the incident, the club had sold a total of 28,765 boxes of various cigarettes, amounting to 4.363 million yuan.

During the trial, it was revealed that the two defendants in the aforementioned cases were actually the same person, and Chen was also one of the shareholders of the Zhengzhou "Royal No. 1" entertainment club.

"The total investment in Zhengzhou 'Royal No. 1' is over 60 million yuan, and my share is less than one-sixth," Chen testified during the trial, stating that he had not graduated from elementary school, had collected waste, sold beer, and later delivered drinks to shopping malls and entertainment venues. As his business gradually expanded, he began investing in entertainment venues in 2004 and held different shares in several entertainment venues in Zhengzhou.

During the trial, both sides presented their opinions. Defendant Chen stated that cigarettes and alcoholic beverages were one of the main sources of income for "Royal No. 1." The defendant's lawyer presented evidence that Chen had contributed to the construction and public welfare of his hometown.

The entire trial lasted for more than two hours without a verdict being announced on the spot.

"Royal No. 1" is a nightclub in Zhengzhou, claiming to be "the first club in Central China." After being investigated by the police in November 2013, 133 individuals involved were transferred to the procuratorial organs for review and prosecution.

In November 2014, officials stated that the Zhengzhou "Royal No. 1" series of cases involved four charges: organizing prostitution, assisting in organizing prostitution, illegal business operations, and harboring. A total of 75 defendants were involved. Since October 2014, the Zhengzhou "Royal No. 1" series of cases has been publicly tried for the first time in the Huixian City People's Court of Henan Province against defendant Jia and 11 others for assisting in organizing prostitution, but due to personal privacy issues, subsequent trials have not been made public. (End)

(Original title: Direct hit on the Zhengzhou "Royal No. 1" case's first public trial: the defendant is one of the shareholders.)