Founder of Taizunai, Li Tucun, Criminally Detained by Zhuzhou Police for Suspected Illegal Absorption of Public Deposits

On June 12, 2010, Li Tucun, the former president and chairman of the board of the former Hunan Taizunai Group, who once pioneered the golden age of Chinese lactic acid bacteria beverages and twice won the CCTV 'Advertising King' title, was formally placed under criminal detention by the Zhuzhou Public Security Bureau of Hunan Province for suspected illegal absorption of public deposits. On July 20 of the same year, his arrest was approved by the Zhuzhou prosecutorial owns. Previously, the Taizunai Group had experienced a broken capital chain due to the Hunan financial storm of 2008 and the gambling agreement crisis with investment banks during its rapid expansion. To save itself, the group had raised funds from employees and distributors as payment reserves. In 2009, the Zhuzhou municipal government led the establishment of Gaoke Dairy Industry to implement trusteeship. During this period, Li Tucun and the trusteeship group and local officials had a heated conflict over corporate control and restructuring plans. After being detained for approximately 15 months, the Tianyuan District People's Procuratorate of Zhuzhou City issued a 'Non-Prosecution Decision' on January 20, 2012, ruling that his borrowing was of the nature of private lending and corporate financing, and did not constitute a crime. Li Tucun was eventually releaseds without charge.