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Summary of article:
Fujian businesswoman Lin Huirong was removed from power after being unjustly imprisoned for 13 years. Although he received 1.716 million yuan as state compensation, his detention due to wrongful conviction caused the company to close and the loan interest increased rapidly. He is still facing the pressure of debt of 13 million yuan.
Fujian businessman Lin Huirong submitted a state compensation petition to the Supreme People’s Court on 27 October. It had been 13 years since he was detained on embezzlement charges, and almost a year since he was found not guilty in a retrial. After the case was overturned, she received 1.716 million yuan (RMB, equivalent below, approximately US$257,000) in state compensation, but her property damages were not supported, and another 5 million yuan was not supported.loan The interest has increased to 13 million yuan (about US$1.95 million).
Lin Huirong, a Fujian businesswoman who pleaded not guilty and received 1.71 million yuan in state compensation, appealed again: She was detained the same month she took out the loan and still owes 13 million yuan in principal and interest. Nearly a year after being acquitted of job embezzlement charges, Fujian businessman Lin Huirong filed a petition for state compensation with the Supreme People’s Court. Although the unjust 13-year-old case has been settled, the real financial difficulties and debt storm he faces is far from over.
Jimian News reported that in 2010, Lin Huirong and her husband Lin Mingwu co-founded Jinfurong Trading (Fujian) Co., Ltd. and served as executive directors. In May 2013, he used the company as guarantee and his private shopping mall as mortgage to obtain a loan of 5 million yuan from the bank for the cultivation and sale of agricultural and sideline products and Chinese herbal medicines. However, in the same month that the loan was issued, Lin Huirong was suddenly criminally detained.
According to reports, in 2016, Zhangpu County People’s Court sentenced him to 7 years in prison in the first instance. After Lin Huirong was jailed, the company’s leased land expired and the company was closed because there was no one to operate it. The equipment was destroyed and the value of the trademark was completely destroyed. Until his release from prison in 2020 after serving his sentence, he continued to appeal. After several remands, the Jiangcheng District People’s Court finally acquitted Lin Huirong in December 2025.
However, the not guilty verdict did not erase the debt. Since he was unable to repay the loan while serving his sentence, Lin Huirong is included in the list of persons subject to execution for breach of trust. After adding penalty interest and compound interest on this 5 million yuan loan, the interest reaches 13 million yuan by October 2026, far higher than the principal. The lawyer said that after talks with the government, the interest may be reduced, but the principal amount will still have to be repaid in full.
The report reported that in August this year, the Compensation Committee of the Fujian Provincial High Court decided to uphold the decision of the Zhangzhou Intermediate People’s Court and award Lin Huirong personal freedom compensation and mental injury consolation payment, totaling about 1.716 million yuan. However, Lin Huirong’s claim for compensation for huge property loss and health damage was not supported. The court held that the asset confiscation stipulated in the original judgment was not actually implemented, and judicial authorities had not directly seized or infringed upon his assets, so there was no legal basis.
According to the report, Lin Huirong’s lawyer Li Zipeng analyzed that the current “State Compensation Law” mainly provides compensation for “direct losses” caused by illegal seizure and freezing by law enforcement agencies. It is difficult to cover “indirect losses” such as business closures and loan defaults due to wrongful custody. At the level of the Civil Code, a breach of contract due to serving a sentence is usually considered to be the cause of a third party, and the civil debt should still theoretically be borne by the parties themselves.
At present, in addition to filing the state compensation complaint with the Supreme People’s Court, Lin Huirong has also continued to accuse the investigators of relevant units and the case of false witnesses, trying to promote judicial accountability and seeking final justice in the legal dilemma.
Summary FAQ
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Although he was acquitted in the retrial and received 1.716 million yuan in state compensation, he claimed that he was not compensated for the company closure, health damage, and huge property losses caused by the unjust case. So, he appealed to the Supreme Court in hopes of getting more complete compensation.
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Lin Huirong was detained in the same month that the loan was issued. During his sentence, he was unable to repay loans normally. The bank’s debt increased due to penalty and compound interest. The interest has so far reached 13 million yuan, far higher than the original principal amount of 5 million yuan.
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The Compensation Committee believes that the original decision to seize assets has not been actually implemented, and judicial authorities have not directly seized or infringed upon their assets; According to the current national compensation law, enterprise shutdowns and loan defaults are mostly indirect losses and are difficult to be included in compensation.
