In September 2023, Sichuan Kelun Pharmaceutical Co., Ltd. (002422.SZ) reported that false negative articles about the company were circulating online, damaging its commercial reputation. The Xindu District branch of Chengdu Public Security Bureau launched an investigation, leading to the arrest of Shu Taihui and Shu Taihuang, who operated a self-media platform in Jiangxi.
The Xindu District Procuratorate later prosecuted the group for extortion, identifying them as a malicious organization. The court found that Shu Taihui and his associates exploited the sensitive pre-IPO phase of targeted companies, threatening them with negative interview letters or articles to extort money. The group was deemed a criminal syndicate led by Shu Taihui.
In December 2024, the first-instance verdict sentenced Shu Taihui to 10 years and 3 months in prison and Shu Taihuang to 4 years, while five others received suspended sentences. Three defendants, including Shu Taihui, appealed. In July 2025, Chengdu Intermediate Court revoked the original verdict and ordered a retrial.
During the retrial in October 2025, the defense raised jurisdictional and recusal objections, delaying substantive proceedings. Authorities reported that the syndicate targeted 102 companies across 24 provinces, involving over 18 million yuan. However, the court confirmed extortion against 12 companies in six provinces, totaling 805,000 yuan, with 100,000 yuan unpaid.
Notably, two journalists from official news agencies were implicated as paid writers, earning 1,400 yuan and 1,800 yuan respectively, and were convicted.
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