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POLITICAL MEMO POLITICALPOLITICAL MEMO MEMO 2 CHILDREN SLAIN Billions Amassed in the Shadows POLITICAL MEMO 2 CHILDREN2 CHILDREN SLAINObama SLAINBillions Campaign Endgame: Amassed in the Shadows 2 CHILDREN SLAIN Billions Amassed AmassedAT HOME IN CITY; in inBy the thethe ShadowsFamily Shadows of China’s Premier ObamaObama Campaign Campaign Endgame: Endgame: Grunt Work and Cold Math NANNY ARRESTED Obama Campaign Endgame:AT HOMEAT HOME IN CITY; IN CITY; Many relatives of Wen Jiabao, including his son, daughter, younger brother and AT HOME IN CITY; By JIMBy RUTENBERG the Family of brother-in-law,China’s have become extraordinarily Premier wealthy during his leadership. Grunt Work and Cold Math CHICAGO — This is what post-debateByBy movement thethe in the Family Family of of China’s China’s Premier Premier GruntGrunt Work Work and and Cold Cold Math Math “grinding it out” looks like at polls has peaked, Mr. Obama’s BOY AND GIRL STABBED Wen Jiabao NANNY ARRESTEDPresident Obama’sMany election relativeshead- campaign of technicians Wen Jiabao, — and including his son, daughter, younger brother and PRIME MINISTER OF CHINA NANNYNANNY ARRESTED ARRESTEDquarters: scores of young staffManythat’s relativesrelatives what many of of themof Wen Wenare — Jiabao, Jiabao, including including his hisson, son, daughter, daughter, younger younger brother brother and and Has said leaders should members intently clicking away are putting as much faith in the Mother Found Them — ensure that family By JIM RUTENBERG at computer keyboardsbrother-in-law, as they multimillion-dollar have become machine they extraordinarily wealthy during his leadership. members and friends By JIMBy RUTENBERG JIM RUTENBERG crunch gigabytes of data aboutbrother-in-law,built for just such a haveclose have race become asbecomeSuspect extraordinarily extraordinarily Cut Her Own wealthy wealthy during during his leadership. his leadership. “do not abuse govern- CHICAGO — This is what post-debate movement in the which way undecided voters are in the president himself. ment influence.” CHICAGOCHICAGO — This —is Thiswhat is what post-debatepost-debate movement movement in the in the “We are exactly where I Throat, Police Say “grinding it out” looks like at polls has peaked, Mr. Obama’s leaning, where they can be Wen Jiabao “grinding“grinding it out” looks it out” like looks at like at polls haspolls peaked, has peaked, Mr. Obama’sMr. Obama’sBOY ANDBOYBOY GIRL AND AND STABBED GIRL GIRLreached, STABBED STABBED and when; strategists thought we would be, in a very Wen WenJiabao Jiabao standing at whiteboards busily close election with 12 days left MOTHER President Obama’s election head- campaign technicians — and PRIMEPRIME MINISTER MINISTER OF OF CHINA CHINA PresidentPresident Obama’s Obama’s election election head- head-campaigncampaign technicians technicians — and — and writing and erasing early voting with two things to do and two By WENDY RUDERMAN YANG ZHIYUN PRIME MINISTER OF CHINA quarters: scores quarters:of young scoresstaff of youngthat’s staff what manythat’s of what them many are — of them are — numbers and turnout possibili- things only: persuade the unde- and MARC SANTORA Had investments in HasHas said said leaders leaders should should quarters: scores of young staff that’s what many of them are — ties; a lonely Ping-Pong table. cided and turn our voters out,” A mother returned home to her her name in Ping An Has said leaders should members intentlymembers clicking intently away clickingare putting away as aremuch putting faith as in much the faith in the said Jim Messina, 43, the presi- Insurance once worth ensureensure that that family family members intently clicking away are putting as much faith in theMother FoundMother ThemFoundThe — Themwave of passion — and ex- luxury Upper West Side apart- ensure that family at computer keyboardsat computer as they keyboardsmultimillion-dollar as they multimillion-dollar machine they machine they Mother Foundcitement Them that coursed — through dent’s technocratic campaign ment on Thursday evening to $120 million. membersmembers and and friends friends at computer keyboards as they multimillion-dollar machine they Mr. Obama’s headquarters here manager, slightly paler and more find two of her children, a 2-year- members and friends crunch gigabytescrunch of data gigabytes about of databuilt about for just suchbuilt a for close just race such as a close raceSuspect as SuspectCut Her Cut Ownin 2008 Her has been Own replaced with a hunched than he was when the old boy and a 6-year-old girl, fa- “do“do not not abuse abuse govern- govern- crunch gigabytes of data about built for just such a close race as Suspect Cut Her Own campaign began. Pointing to the tally stabbed in a bathtub by the “do not abuse govern- WIFE which way undecidedin voters the president are in himself.the president himself. methodical and workmanlike ap- ment influence.” ZHANG BEILI which way undecided voters are proach to manufacturing the win- rows of personnel outside his of- family’s nanny, the authorities ment influence.” which way undecided voters are in the president“We are exactly himself. where I Throat, Police Say ment influence.” Is an expert in gems leaning, where theyleaning, can bewhere they can“We be are exactly where I Throat, Police Sayning coalition that came together fice on Thursday, he added, “Ev- said. The nanny herself lay on the leaning, where they can be “We are exactly where I Throat, Police Say erything in that room has been floor, near a bloody knife, with an and a force in the reached, and when; strategists thought we would be, in a very more organically and enthusiasti- nation’s diamond trade. reached, and when; strategists thought we would be, in a very cally for him the last time, a more focused on that.” apparently self-inflicted slash to reached,standing and when; at whiteboards strategists busilythoughtclose we election would be,with in 12 a days very left FourMOTHER years ago, Mr. Obama’s standing at whiteboards busily close election with 12 days left arduous task with no guaranteeMOTHER her own throat. By WENDY RUDERMAN YANGpoliticalMOTHER ZHIYUN team here was preparing Police Commissioner Raymond standingwriting at whiteboards and erasing busily early votingclose withelection two thingswith 12 to days do and left twoBy WENDY RUDERMANof success. YANG ZHIYUN REUTERS writing and erasing early voting with two things to do and two As Washington and the cable one of its trademark showstop- W. Kelly said the mother, Marina with twothings things only: to persuade do and two the unde- By WENDYand MARC RUDERMAN SANTORA HadYANG investments ZHIYUN in BROTHER writing andnumbers erasing and early turnout voting possibili- and MARC SANTORAnews commentariat breathlessly pers: a half-hour prime-time pro- Krim, had left her apartment a WEN JIAHONG numbers and turnout possibili- things only: persuade the unde- Had investments in block from Central Park at 57 numbersties; and a turnout lonely Ping-Pong possibili- table. thingscided only: and persuade turn our the voters unde- out,” A andmother MARC returned SANTORAdiscuss homewhether Mittto her Romney’sherHad name investmentsContinued in Ping on AnPage in A23 Controls $200 million ties; a lonely Ping-Pong table. cided and turn our voters out,” her name in Ping An West 75th Street to take one of in assets, including The wave of passion and ex-cided saidand Jimturn Messina, our voters 43, theout,” presi-A motherluxury returned Upper home West to her Side apart- Insuranceher name once in Ping worth An her children, a 3-year-old girl, to ties; a lonely Ping-Pong table. A mother returned home toInsurance her once worth waste treatment The wave of passion and ex- said Jim Messina,dent’s 43, technocratic the presi- campaignluxury Upper West Side apart- $120 million. a swimming lesson. The two oth- plants and recycling The wavecitement of passion that coursed and ex- throughsaid Jim Messina, 43, the presi- luxuryment Upper on Thursday West Side evening apart- to Insurance once worth er children were left with the citement that coursed through dent’s technocraticmanager, campaign slightly paler andment more on Thursday evening to $120 million. businesses. citementMr. that Obama’s coursed headquarters through heredent’s technocratic campaign mentfind ontwo Thursdayof her children, evening a 2-year- to $120 million. nanny, Yoselyn Ortega, 50. WIFE’S BROTHER manager, slightlyhunched paler than and he more was whenfind the two of her children, a 2-year- When Ms. Krim returned ZHANG JIANMING Mr. Obama’s headquartersin 2008 has beenhere replaced with manager,a slightly paler and more old boy and a 6-year-old girl, fa- around 5:30 p.m., the commis- Mr. Obama’s headquarters herehunched than campaignhe was when began. the Pointing to the find two of her children, a 2-year- SON WIFE DAUGHTER Invested in diamond in 2008 has been replacedmethodical with and a workmanlike ap- old boy andtally a 6-year-old stabbed in girl,a bathtub fa- by the sioner said, she found a dark WEN YUNSONG ZHANG BEILIWEN RUCHUN companies with his in 2008 has been replaced with a hunched than he was when the old boy and a 6-year-old girl, fa- apartment. She went back down WIFE proach to manufacturingcampaign the win- began.rows Pointing of personnel to the outside his of- family’s nanny, the authorities Co-founded a major private equity Holds sharesWIFE of a Chinese sister’s colleagues. methodical and workmanlike ap- tally stabbed in a bathtub by the to the lobby to ask the doorman if firm called New Horizon Capital. diamond company. methodical and workmanlike ap- campaign began. Pointing to the tally stabbed in a bathtub by the IsZHANG an expert BEILI in gems THE NEW YORK TIMES proach to manufacturingning coalition the win- that camerows together of personnelfice on outside Thursday, his of- he added,family’s “Ev- nanny,said. The the nanny authorities herself lay on the he had seen the nanny and her ZHANG BEILI proach to manufacturing the win- rows oferything personnel in that outside room hashis beenof- family’s nanny, the authorities children. When told that they had Is anand expert a force in gemsin the more organically and ficeenthusiasti- on Thursday, he added, “Ev- said. The nannyfloor, nearherself a bloody lay on knife, the with an not left the building, she returned Is an expert in gems ning coalition that came together fice onfocused Thursday, on that.” he added, “Ev- said. The nanny herself lay on the By DAVID BARBOZA andnation’s a force diamond in the trade. politically connected people have ning coalitioncally for that him came the last together time,erything a more in that room has been apparently self-inflicted slash to to the apartment. She looked TIMES WEB SITES ARE BLOCKED profited from being at the in- more organically and enthusiasti- floor, near a bloody knife, with an around in the quiet rooms. Fi- BEIJING — The mother of Chi- and a force in the erythingFour in that years room ago, has Mr. beenObama’s floor, near a bloody knife, with an nation’sChina blocked diamond access to trade. an article tersection of government and more organicallyarduous task and with enthusiasti- no guaranteefocused on that.” her own throat. nally, she turned the lights on in na’s prime minister was a school- cally for him the last time, a more apparently self-inflicted slash to on wealth nation’s accumulated diamond by the trade.business as state influence and focusedpolitical on that.” team here was preparingapparently self-inflicted slash to the bathroom — and discovered teacher in northern China. His fa- cally for ofhim success. the last time, a more Police Commissioner Raymond REUTERS prime minister’s family. Page A12. private wealth converge in Chi- Four years ago, Mr. Obama’s her own throat. her two children in the bathtub ther was ordered to tend pigs in arduous task with no guarantee Fourone years of its ago, trademark Mr. Obama’s showstop- na’s fast-growing economy. arduous taskAs Washingtonwith no guarantee and the cable herW. own Kelly throat. said the mother, Marina and the nanny unconscious on one of Mao’s political campaigns. political team here was preparing Police Commissioner Raymond BROTHER Unlike most new businesses in of success. politicalpers: team a half-hour here was prime-time preparing pro- Krim, had left her apartment a the floor. And during childhood,REUTERS “my fam- years later as prime minister. of success.news commentariat breathlessly Police Commissioner Raymond WEN JIAHONG REUTERS China, the family’s ventures As Washington and the cable one of its trademark showstop- W. Kelly said the mother, Marina “There were bloodcurdling ily was extremely poor,” the Many relatives of Wen Jiabao, discuss whether Mitt Romney’sone of its trademark showstop- W. blockKelly fromsaid the Central mother, Park Marina at 57 BROTHER screams from a woman,” said prime minister, Wen Jiabao, said sometimes received financial As Washington and the cablepers: a half-hour prime-timeContinued onpro- Page A23 ControlsBROTHER $200 million including his son, daughter, backing from state-owned com- news commentariat breathlessly Krim, had West left her 75th apartment Street to take a one ofWEN JIAHONG DAMON WINTER/THE NEW YORK TIMES Rima Starr, who lives down the in a speech last year. younger brother and brother-in- pers: a half-hour prime-time pro- Krim, had left her apartment a in assets, including panies, including China Mobile, news commentariat breathlessly President Obama cast his early ballotWEN Thursday JIAHONG in Chicago. hall from the victims’ second- But now 90, the prime min- law, have become extraordinarily block fromher Central children, Park a 3-year-old at 57 girl, to one of the country’s biggest discuss whether Mitt Romney’s Continued on Page A23 block from Central Park atControls 57 $200waste million treatment floor apartment. Ms. Starr also ister’s mother, Yang Zhiyun, not wealthy during his leadership, an discuss whether Mitt Romney’s phone operators, the documents Continued on Page A23West 75th a Street swimming to take lesson. one The of two oth- Controls $200 million recognized a man’s screaming only left poverty behind — she investigation by The New York in assets,plants including and recycling show. At other times, the ven- West 75th Street to take one of voice as that of the building su- became outright rich, at least on Times shows. A review of corpo- her children,er a children 3-year-old were girl, left to with the in assets, including tures won support from some of waste treatmentbusinesses. perintendent.The screams paper, according to corporate rate and regulatory records in- her children, a 3-year-oldBad Luck girl, toand Missteps Make Asia’s richest tycoons. The Times a swimmingnanny, lesson. Yoselyn The twoOrtega, oth- 50. waste treatment prompted neighbors to call 911. and regulatory records. Just one dicates that the primeWIFE’S minister’s BROTHER plants and recycling found that Mr. Wen’s relatives ac- a swimmingWhen Ms.lesson. Krim The two returned oth- plants and recycling Ms. Ortega was arrested as soon investment in her name, in a relatives, some ofZHANG whom have JIANMING a er children were left withG.O.P.’s the Senate Climb Steeper as the police arrived. She was large Chinese financial services knack for aggressive deal-mak- cumulated shares in banks, jew- er children were left with thebusinesses. elers, tourist resorts, telecom- nanny, Yoselynaround Ortega, 5:30 50. p.m., the commis- businesses. taken SON to NewYork-Presbyterian company, hadDAUGHTER a value of $120 mil- ing, including hisInvestedWIFE’S wife, have BROTHER in con- diamond nanny, Yoselyn Ortega, 50. Hospital/Weill Cornell Medical lion five years ago, the records trolled assets worth at least $2.7WIFE’Smunications BROTHER companies and in- sioner said, she found a dark WENCenter, YUNSONG where she was in critical WEN RUCHUN ZHANGcompanies JIANMING withfrastructure his projects, sometimes When Ms. Krim returned By JONATHAN WEISMAN show. billion. ZHANG JIANMING Whenapartment. Ms. She Krim went back returned down but stable condition. The details of how Ms. Yang, a In many cases,sister’s the names colleagues. of by using offshore entities. Jennifer Duffy, a SenateCo-founded political a major private equity Holds shares of a Chinese around 5:30 p.m., the commis-WASHINGTON — The Indiana SON According to the police, Ms. widow,DAUGHTER accumulated such wealth the relativesInvested have been in hidden diamondThe holdings include a villa de- aroundto the lobby 5:30 to p.m., askSenate the candidatedoorman commis- Richard if E. analyst at the nonpartisanfirm Cookcalled New HorizonSON Capital. diamond company.DAUGHTER Investedvelopment in diamond project in Beijing; a sioner said, she found a dark WEN YUNSONGKrim and her husband, Kevin, areWEN not known, RUCHUN or even if she was behind layerscompanies of partnershipsTHE NEW andwith YORK his TIMES sionerhe had said, seen she the Mourdock’s found nanny aand reintroduction dark her of Political Report. “It’s just getting hadWEN three YUNSONG children — Nessie, the aware of the holdingsWEN RUCHUN in her investment vehicles involvingcompaniestire factory with in his northern China; a apartment. children. She went When back toldrape down andthat abortion they into had the politi- a lot harder.”Co-founded a major3-year-old private who equity lived, and LuciaHoldsname. shares But it of happened a Chinese after her friends, worksister’s colleagues colleagues. and company that helped build some apartment. She wentcal dialogue back this down week is the lat- Rob Jesmer, the executiveCo-founded di- and Leo.a major Ms. Krim private wrote aequity blog son wasHolds elevated shares to China’s of rul-a Chinesebusiness partners. Untanglingsister’sof colleagues. Beijing’s Olympic stadiums, in- to the lobby to ask the doormanest in a if series of political mis- rector of thefirm National called Republican New Horizon Capital. diamond company. to thenot leftlobby the to building, ask the she doorman returned if By DAVID BARBOZAfirm calledwhere New she documentedHorizon Capital.“life with ing elite, firstdiamond in 1998 company. as vicepoliticallytheir financial connected holdingsTHE NEW providespeople YORK TIMEScludinghave the well-known “Bird’s he had seen the nanny andsteps herthat have made the Repub- Senatorial Committee, said ContinuedBy on Page DAVID A3 primeBARBOZA minister and then five an unusually detailed look at howTHE NEWContinued YORK TIMES on Page A14 he to had the seen apartment. the lican nanny quest She to and seize looked hercontrol of the Thursday that Republican candi- TIMES WEB SITES ARE BLOCKED profited from being at the in- children. Whenaround told in that the they quietSenate had a steeper rooms. climb. Fi- BEIJINGdates were — within The reach mother of vic- of Chi- children. When told that they had tory in 10 to 12 competitive races, China blocked access to an article tersection of government and not left the nally,building, she sheturned returned theOnce lights viewed ason likely in to na’s win prime minister was a school- not left the building,the Senate,she returned Republicans areBy now DAVIDwith Mr. BARBOZA Romney’s improvement onBEIJING wealth accumulatedbecame by theoutrightpoliticallybusiness rich, connected as stateat least influencepeople on have paper, and accord- to the apartment.the bathroom She — in looked and jeopardy discovered of losing seatsteacher in in theBy in polls DAVIDnorthern lifting candidatesBARBOZA China. in HisCiti fa-TIMES Chairman WEB SITES AREIs Said BLOCKED to Have Plannedpolitically Chief’s connected Exit people Over have Months to the apartment. She looked states that were out of play six prime minister’s family. Page A12.profitedprivate from wealth being converge at the in Chi- in- around in her the two quiet children rooms.Massachusetts in Fi- the bathtub andhBEIJING e Maine. motherther If — was The ordered ofmother China’s to of tend Chi- pigsprime in ministerTIMES WEB SITESing ARE to BLOCKEDcorporateprofited and regulatory from being atrecords. the in- Just around in the quietthey do, rooms. they will need Fi- to win atBEIJINGweeks ago. — The mother ofChina Chi- blocked accessthird to an release article stated Mr.tersection Panditna’s fast-growing of government economy. a and longtime lieutenant. nally, she turnedand the the nanny lights least unconscious on five in seatsna’s held on byprime Demo-one minister ofBut Mao’s time iswas politicaldwindling. a school- Thecampaigns. im- By JESSICA SILVER-GREENBERGChina blockedhad access been fired to withoutan article cause. tersection of government“Vikram has and offered his resig- was ana’s schoolteacherplications prime for minister the next two was yearsin anorthern school- China. one investmentUnlike in her most name, new businesses in a large in Chinese nally,the floor.she turned thecrats andlights hold three on other in Repub-And during childhood, “my fam-onand wealth SUSANNE CRAIG accumulatedThe choice by was thehis. business as state influence nation, and and we would like to give the bathroom — and discoveredlican seats at riskteacher to net the three in northerncannot be overstated. China. If His Mr. Oba- fa- yearson later wealth as prime accumulatedThe minister. abrupt encounter, by the de- business as state influenceyou the opportunity and to offer the bathroom — and discoveredHis fatherteacher wasin northern ordered China. to HisVikramprime tend fa- Pandit’s minister’s pigs last day infamily. at financial Page A12. servicesprivateChina, wealth company, the convergefamily’s had ventures in Chi-a value of $120 “There wereneeded bloodcurdling to take thether Senate was if Mittily ordered ma was wins extremelyato second tend term, pigs his poor,” hand in the Many relativesscribed of Wen by three Jiabao, people briefed private wealth convergeyours,” a inboard Chi- member said, fol- her two children in the bathtubT would be much strengthened by Citigroup swungprime from celebra-minister’s family. Page A12.sometimes received financial herscreams two children from aRomney in woman,” the wins bathtub the presidency. said therprime was minister, ordered Wen to Jiabao, tend pigssaid in on the conversation, includedna’s afast-growing economy. lowing a script prepared by the and the nanny unconsciousIf Presidentone on of one Obama Mao’s of prevails, Mao’s politicala political Democratic-led campaigns. campaigns. Senate, even a tory to devastatingAndincluding during in a matter his of terse son,million comment daughter, by thefive chairman, yearsna’s ago, fast-growing the records economy.board’s show. lawyers, according to DAMON WINTER/THE NEW YORK TIMES one of Mao’s political campaigns. backing from state-owned com- andRima the Starr, nanny who unconsciousRepublicans lives down will have the on to winin at a speechnarrowly divided last year. one, as opposed minutes. Havingyounger fielded congrat- brotherMichael and E.brother-in- O’Neill: “The boardUnlike most new businessesseveral in people with knowledge of the floor. And during to childhood, unified Republican “my majorities fam- ulatoryyears e-mails later about as the prime earn- minister. panies, Unlike including most China new Mobile, businesses in President Obama cast his early ballot Thursday in Chicago. thehall floor. from the victims’least childhood, one additional second- seat “my inAnd aBut duringfamily now 90, childhood, was the primeextremely “my min- fam- law,poor,”years have laterthebecome ashas primeextraordinarily lost confidence Theminister. in you.”detailsChina, of the how family’s Ms. Yang, venturesthe meeting.a widow, ac- “There were bloodcurdlingstate where theyily are was seen as extremelyin the House and poor,” the Senate. the ings reportMany in therelatives morning that of WenA stunned Jiabao, Mr. Pandit choseone to ofChina, the country’s the family’s biggestStartled, ventures Mr. Havens briefly “Therefloor apartment. were slightly Ms.bloodcurdlingprime behind Starr — in alsominister, Connecticut,ilyister’s wasAt mother,Wen the moment, extremely Jiabao, Yang Democrats Zhiyun, poor,”are saidsuggested not thein thewealthya bank speechMany was during finally relatives hisresign cumulatedleadership, immediately. of Wen Even anJiabao,sometimes thoughsuch wealth received are not financial known,challenged the directors,or even pointing screams from a woman,” said prime minister,given littleWen chance Jiabao, of winning said the on more solid ground, Mr. Pandit phonesometimes operators, the received documentsto the solid financial performance of the in- recognized a man’sFlorida, Ohio screaming or Pennsylvania.only left poverty behind — sheincluding his son,Mr. Pandit daughter, and the board have CARLOS OSORIO/ASSOCIATED PRESS screams from a woman,” said prime minister, Wen Jiabao,strode said into theinvestigation officeincluding of the chair- by his The son, New Yorkdaughter,backing from state-owned com- DAMON WINTER/THE NEW YORK TIMES Rima Starr, who lives down“Republicans last the year. in can a dospeech it,” said last year.Continued on Page A22 younger brother andpublicly brother-in-if shecharacterized was his exitawareshow. as Vikram backing At of S. other Panditthe from times,holdings state-owned the stitutional ven- in her clients com- group,name. and then DAMON WINTER/THE NEW YORK TIMES Rimavoice Starr, as that who of lives the building down the su- inbecame a speech outright last year.rich, at leastman on at day’sTimes endyounger on shows. Oct. 15 for brother A hisreview decision, and of interviews corpo- brother-in- withpanies, peo- including China Mobile,relented, saying his resignation President Obama cast his early ballot Thursday in Chicago. hall from perintendent.The the victims’ second- screamsBut now 90, the prime min- what he considered just another ple close to the board describetures panies, won support including from some Chinawould of be Mobile, on Mr. Pandit’s desk hall from the victims’ second-But nowpaper, But90, now accordingthe 90,prime the to prime corporateminister’s law, min- haverate mother, become and regulatory extraordinarily But records it happened in- tive’s after ouster, they her say, first son meet- was elevated to PresidentBad Obama Luck cast his earlyand ballot Missteps Thursday in Chicago. Makefloor apartment. Ms. Starr also ister’s ELECTION mother, Yang2012 Zhiyun, not of their frequentlaw, meetings have on his becomehow the extraordinarily chairman maneuveredoneAsia’s of richest the country’s tycoons. The biggest Timeswithin five minutes. floorprompted apartment. neighbors Ms. Starr to call also 911. ister’sand regulatory mother, records. Yang Zhiyun, Justcalendar. onewealthy notdicates during that his the leadership, behindprime the minister’s scenes an for months ingone privately of with the less-satisfied country’sThe dramatic biggest boardroom coup Yang Zhiyun, not only left poverty behind,wealthy she during China’s his leadership, rulingphone foundan elite,board operators, that members Mr.first Wen’s and the in then documentsrelatives draw-1998at as theac- bank’s vice Park primeAvenue head- recognized Ms. a Ortega man’s was screaming $2arrested BILLION CAMPAIGN asonly soonPresident leftinvestment povertyObama and Mitt behind Romney in her are — each name, she on inInstead,investigation a Mr.relatives, Pandit, the by some chief The ahead of New whom of that York have day to forcea Mr. phone operators, the documents recognized a man’space to raise screaming more than $1 billiononly with their left parties poverty by Election behindDay. executive — she of Citigroup,investigation was told Pandit by out The and replace New him show. York withcumulated ing At in otherothers shares until times, Mr. inPandit banks,the had ven-quarters jew- has rankled some peo- G.O.P.’s Senate Climb Steepervoice as thatas ofthe the police building arrived. su- Shebecame was large outright Chinese rich, financialat least on servicesthree newsknack releases were for ready. aggressiveMichael L. deal-mak- Corbat, the board’s virtuallyshow. no allies At left. other times,ple at Citi, the especially ven- senior exec- BY NICHOLAS CONFESSORE AND JO CRAVEN MCGINTY, PAGE A18 Times shows. A review of corpo- voice as that of the building su- became outright rich, at least on Times shows. A review of corpo-tureselers, won As tourist Mr. support Pandit was resorts, fromreeling from some telecom-utives of who feel that the action perintendent.Thetaken to NewYork-Presbyterian screams paper, accordingcompany, had to a value corporate of $120One mil-rate stated and ing, that Mr. including regulatory Pandit had hischosen recordswife, successor. have in- con- tures won support from some of Bad Luck and Missteps Make perintendent.TheHospital/Weill CornellCLIMATE CHANGE screams MedicalBoth presidentialpaper, candidates according agree that the world to is corporateresigned, effectiverate immediately. and regulatoryOnce he became records chairmanAsia’s thismunications in- richesthis encounter, tycoons. companiesthree board The mem- andTimeswas in-needlessly ruthless and who Bad Luck and Missteps Makeprompted neighbors to callwarming 911. and thatand humans regulatory are lionat least fivepartly records. to years blame, but ago, Justneither the cam-one recordsAnotherdicates thattrolled he that would assetstheresign, prime ef- worthyear, minister’s Mr. at O’Neill, least 66, $2.7meticulously bersAsia’s confronted richest John Havens, tycoons. the spoke The only Times on the condition that promptedCenter, where neighbors shepaign was is to talking in call criticalabout 911. solutions.andBY JOHN regulatory M. BRODER, PAGE records. A18 Justfective one at the enddicates of the year. that The builtthe a prime case for theminister’s chieffound execu-frastructure thatbank’s Mr. chief operatingWen’s projects, officerrelatives sometimes and ac-Continued on Page B7 By JONATHAN WEISMAN Ms. Ortega was arrested as soon investmentshow. in her name, in a relatives,billion. some of whom have a found that Mr. Wen’s relatives ac- Ms.but Ortega stable wascondition. arrested as soon investment in her name, in a relatives, some of whom havecumulatedby a using offshore shares inentities. banks, jew- G.O.P.’s Senate Climb Steeper as the police arrived. She was large ChineseThe details financial of how services Ms. Yang,knack a forIn many aggressive cases, deal-mak- the names of cumulated shares in banks, jew- G.O.P.’sWASHINGTON Senate — The Indiana ClimbJennifer Duffy, Steeper a Senate politicalas theAccording police arrived. to the police, She was Ms. largewidow, Chineseaccumulated financial such wealth services knack for aggressive deal-mak-elers,The tourist holdings resorts, include telecom-a villa de- taken to NewYork-PresbyterianOBITUARIES A30-31company, had a valueBUSINESS of DAY $120 B1-8 mil- ing, includingtheSPORTSFRIDAY relatives his wife, B9-15 have have been con- hidden elers, tourist resorts, telecom- Senate candidate Richard E. analyst at the nonpartisan CooktakenKrim to and NewYork-Presbyterian her husband, Kevin, company,are not known, had ora value even ifof she $120 was mil- ing, including his wife, have con-velopment project in Beijing; a Hospital/Weill Cornell MedicalJacques Barzun,lion Historian five years ago,Publishers the Plan records to Mergetrolledbehind assetsGiants layers Win worth Tight of partnerships atGame least $2.7 andmunications companies and in- Mourdock’s reintroduction of Political Report. “It’s just gettingHospital/Weillhad three children Cornell — Nessie, Medical the lionaware five of years the holdings ago, the in records her investmenttrolled assets vehicles worth involving at least $2.7tire factorymunications in northern companies China; a and in- a lot harder.” Center, where she was in Acritical wide-ranging show. Random House and Penguin, two of the A bunt was the most memorable play as frastructure projects, sometimes rape andBy JONATHANabortion into WEISMAN the politi- Center,3-year-old where who she scholar, lived, was essayist in and critical Lucia world’s largest book publishers, billion.are en- the Giants beat the Tigers, 2-0, to take a companyfrastructure that helped projects, build some sometimes By JONATHAN WEISMAN but stable condition. show.name. But it happened after her friends,billion. work colleagues andby using offshore entities. cal dialogue this week is the lat- Rob Jesmer, the executive di-butand stable Leo. condition. Ms. Krimand educator, wrote he a blogThe detailsson was of how elevatedgaged inMs. talks toYang, combine China’s a their busi- rul-In manybusinesstwo-games-to-none cases, partners. thelead in namesthe World Untangling Se- of of Beijing’sby using Olympic offshore stadiums, entities. in- WASHINGTON — The Indiana Jennifer Duffy, a Senate political was crucial to the The detailsnesses. of how Ms. Yang,PAGE B1 a ries. In many cases, PAGE the B9 names of WASHINGTONest in a series — The of Indiana political mis-Jenniferrector Duffy, of the a NationalSenate politicalRepublicanAccordingwhere to theshe documented police, Ms. “lifewidow, with accumulated such wealth the relatives have been hidden Thecluding holdings the well-knowninclude a villa “Bird’s de- analyst at the nonpartisan Cook According to thecreation police, of the dis- Ms. widow,ing elite, accumulated first in 1998 such as wealth vice theirthe financial relatives holdings have provides been hidden The holdings include a villa de- Senate candidatesteps Richard that have E.made the Repub- Senatorial Committee,Krim said and her husband, cipline Kevin, of cultural New Light on a Money Debate velopment project in Beijing; a Senate candidate Richard E. analyst at the nonpartisan Cook Krim andContinued her husband, on Page A3 Kevin,are not known,prime or minister even if andshe was then fivebehindan layersWEEKEND unusually of C1-28 partnerships detailed look and at how Continuedvelopment on projectPage A14 in Beijing; a Mourdock’s reintroductionlican quest to seize of controlPolitical of theReport.Thursday “It’s just that getting Republicanhad candi- three children — Nessie,history the and an ex- are not known,A transcript or from even the 1944 if Bretton she was behind layers of partnershipstire and factory in northern China; a Mourdock’s reintroduction of Political Report. “It’s just getting had three childrenponent — Nessie,of the the-aware the of the holdingsWoods conference, in which her laid theinvestment foun- Teddy Roosevelt, vehicles a New involving View tire factory in northern China; a rape and abortionSenate into athe steeper politi- climb.a lot harder.” dates were within reach3-year-old of vic- who lived, and Lucia aware of the holdings in her investment vehicles involvingcompany that helped build some rape and abortion into the politi- a lot harder.” 3-year-old who lived,ory that andthe West name. Lucia But it happeneddation for the after world’s hermonetary friends,system, work colleaguesThe Museum of and company that helped build some cal dialogue this weekOnce is viewed the lat- as likelyRob to Jesmer, win tory the in executive10 to 12 competitive di- and races, Leo. Ms. Krim wrote was a in blog decline, having cultivatedname. the Butwas found it happened in Washington. afterPAGE her B1 friends, workNatural History’s colleaguesof andBeijing’s Olympic stadiums, in- cal dialogue this week is the lat- Rob Jesmer, the executive di- and Leo. Ms. Krimseeds wrote of its own a undoing.son blog was PAGE elevated A30 to China’s rul- business partners. Untangling of Beijing’s Olympic stadiums, in- est in a series the of politicalSenate, Republicans mis- rector are of now the Nationalwith Mr. RepublicanRomney’s improvementwhere she documented “life with son was elevated to China’s rul- business partners.refreshed memori- Untanglingcluding the well-known “Bird’s est in a series of political mis- rector of the National Republican ing elite, first inNATIONAL 1998 A21-22 as vice their financial holdingsal to the provides 26th presi- in jeopardy of losing seats in in the polls lifting candidates inwhere she documented “life with ing elite, first in 1998 as vice their financial holdings provides cluding the well-known “Bird’s steps that have made the Repub- Senatorial Committee, said ContinuedCiti on PageChairman A3INTERNATIONALprime A4-15 Is minister Said and to then Have five an Planned unusually detailed Chief’sdent look opens at (with how a ExitContinued Over on MonthsPage A14 steps that have made the Repub- Senatorialstates that Committee, were out of play said six A Nudge for a Deficit Deal somewhat differ- lican quest to seizeMassachusetts control of the and Thursday Maine. Ifthat Republican candi- Continued onIran Page Said A3to Take Nuclearprime Step minister and then five an unusually detailed look at how Continued on Page A14 lican quest to seize control of the Thursdayweeks that ago. Republican candi- As Republicans and Democrats spar ent context), as Senate a steeper theyclimb. do, they will needdates to win were at within reach of vic- Intelligence officials say Iran hasthird virtu- releaseover deficit stated reduction, Mr. some Pandit business does the newly a longtime lieutenant. Senate a steeper climb. dates wereBut time within is dwindling. reach of The vic- im- ally completed an underground nuclear leaders are increasing pressure on renovated Hall of Once viewed least as likely five toseats win heldtory by in Demo- 10 to 12 competitive races, By JESSICA SILVER-GREENBERG had been fired without cause. “Vikram has offered his resig- Once crats viewed and ashold likely three toother win Repub-tory inplications 10 to 12 competitivefor the next tworaces, years enrichment plant, racing aheadThe despite choiceWashington was his. to reach a deal, even if it Mammals. A re- nation, and we would like to give the Senate, Republicans are now with Mr. Romney’s improvement and SUSANNEinternational CRAIG pressure and heavy eco- raises their own tax bills. PAGE A22 view. PAGE C21 the Senate,lican Republicans seats at risk toare net now the threewith Mr.cannot Romney’s be overstated. improvement If Mr. Oba- nomic sanctions. PAGEThe A6 abrupt encounter, de- you the opportunity to offer in jeopardy of losing seats in in the polls lifting candidates in in jeopardyneeded of to losingtake the seats Senate in if Mittin thema polls wins lifting a second candidates term, Citihis inhand ChairmanVikram Pandit’s last Is day Said at scribed to by NEWHave three YORK A26-30 people Planned briefed Chief’s Exityours,” Over a board Months member said, fol- Massachusetts and Maine. If states that were out of play six Citi ChairmanBritish Abuse Case IsWorsens Said to Have PlannedEDITORIAL, OP-ED A32-33 Chief’s Exit Over Months MassachusettsRomney wins and the Maine. presidency. If stateswould that bewere much out strengthened of play six by Citigroup swung from celebra- on the conversation,A Death Spurs Medical included Efforts a lowing a script prepared by the they do, they will need to win at weeks ago. tory to devastatingScotland in aYard matter calledthird Jimmy of release Savile, one stated Mr. Pandit Paul Krugman PAGE A33 a longtime lieutenant. they do, theyIf President will need Obama to win prevails,at weeksa ago. Democratic-led Senate, even a of Britain’s most popular TV hosts,thirdterse “un- comment releaseThe death statedbyof a 12-year-oldthe chairman, Mr. boy from Pandit sep- board’sa longtime lawyers, lieutenant. according to least five seats held by Demo- But time is narrowlydwindling. divided The im-one, as opposed minutes. Havingdoubtedly” fielded one congrat- ofhad the most been prolificMichael sex fired E.tic without shock O’Neill: has prompted cause. “The nationwide board ef- “Vikramseveral people has offered with knowledge his resig- of least fiveRepublicans seats held will by have Demo- to win atBut time is dwindling. TheBy im- JESSICA SILVER-GREENBERGoffenders in the nation’s recenthad history, beenforts firedby medical without personnel to head cause. off “Vikram has offered his resig- crats and hold three other Repub- plications for tothe unified next two Republican years majoritiesBy ulatoryJESSICA e-mails SILVER-GREENBERG about the The earn- choice was his. nation, and we would like to give crats andleast hold onethree additional other Repub- seat inplications a for the next two years and SUSANNE CRAIGas the number of people who saidThehas they lost choice confidenceproblems was that his. may in you.”have contributed to U(D54G1D)y+&![!,!#!? the meeting.nation, and we would like to give lican seats at riskstate to net where the three they arecannot seen be as overstated.in the House If Mr. and Oba- the Senate. ingsand report SUSANNE in thewere CRAIG morningassaulted by him thatThe rose. abruptPAGEA A12stunned his encounter, death. Mr. About Pandit New York. de- chose PAGE to A26 you Startled, the opportunity Mr. Havens to briefly offer lican seats at risk to net the three cannot be overstated. If Mr. Oba-Vikram Pandit’s last day at The abrupt encounter, de- you the opportunity to offer needed to take theslightly Senate behind if Mitt — in Connecticut,ma wins a secondAt theterm, moment, his hand Democrats are Vikramsuggested Pandit’s the bank last was day finallyscribed at resign by three immediately. people briefed Even though yours,”challenged a board the member directors, said, pointing fol- needed to take the Senate if Mitt ma wins a second term, his Citigrouphand swungon more fromsolid ground, celebra- Mr. Pandit scribed by three people briefed yours,” a board member said, fol- Florida, Ohio or Pennsylvania.would be muchgiven strengthened little chance byof winning the Mr. Pandit and the board have CARLOS OSORIO/ASSOCIATED PRESSlowingto the a solid script performance prepared of by the the in- Romney wins the presidency. would be much strengthened by Citigroup swung from celebra-on the conversation, included a lowing a script prepared by the Romney wins the presidency.a Democratic-led Senate, even a tory to devastatingstrode into in thea matter office of of the chair- onpublicly the conversation,characterized his included exit as a stitutional clients group, and then If President Obama“Republicans prevails, can do it,” saida Democratic-ledContinued Senate, on Page even A22 a tory to devastating in a matterterse of comment by the chairman, Vikram S. Pandit board’s lawyers, according to If President Obama prevails,narrowly divided one, as opposed minutes. Havingman at fielded day’s endcongrat- on Oct. 15 for tersehis decision, comment interviews by the with chairman, peo- relented,board’s saying lawyers, his resignation according to Republicans will have to win at narrowly divided one, as opposed minutes. Having fielded congrat-Michael E. O’Neill: “The board several people with knowledge of Republicans will have to winto unified at Republican majorities ulatory e-mailswhat he about considered the earn- just another Michaelple close E. to O’Neill:the board “The describe board wouldseveral be on people Mr. Pandit’s with knowledge desk of least one additional seat in a to unified Republican majorities ulatory e-mails about the has earn- lost confidence in you.” the meeting. least one additional seat in in the a ELECTIONHouse and the 2012 Senate. ings reportof in their the frequent morning meetings that on his hashow lost the confidence chairman maneuveredin you.” tive’s ouster, they say, first meet- withinthe five meeting. minutes. state where they are seen as in the House and the Senate. ings report in the morning thatA stunned Mr. Pandit chose to ing privately with less-satisfied Startled, Mr. Havens briefly state where they are seen At as the moment, Democrats are suggested calendar. the bank was finally behindA stunned the scenes Mr. Pandit for months chose to The dramaticStartled, boardroom Mr. Havens coup briefly slightly behind — in Connecticut, At the moment, Democrats are suggested the bank was finallyresign immediately. Even though board members and then draw-challengedat the bank’s the directors, Park Avenue pointing head- slightly behind$2 BILLION — inCAMPAIGN Connecticut,givenPresident little Obama chance and of Mittwinning Romney the are on each more on solidInstead, ground, Mr. Mr. Pandit,Pandit the chief resignahead ofimmediately. that day to Even force though Mr. challenged the directors, pointing Florida, Ohio or Pennsylvania. on more solid ground, Mr. PanditMr. Pandit and the board have ing CARLOSin others OSORIO/ASSOCIATED until Mr. Pandit PRESS hadto thequarters solid performance has rankled someof the peo- in- Florida, paceOhio to or raise Pennsylvania. more than $1 billiongiven with theirlittle partieschance by of Election winning Day. the executive of Citigroup, was told Mr.Pandit Pandit out and and replace the board him with have CARLOS OSORIO/ASSOCIATED PRESS to the solid performance of the in- “Republicans can do it,” said Continued on Page A22 strode into the office of the chair- publicly characterized his exit as stitutionalple at Citi, clients especially group, senior and thenexec- “RepublicansBY NICHOLAS can CONFESSORE do it,” said AND JO CRAVENContinued MCGINTY, on Page PAGE A22 A18 strodethree into news the releases office of were the chair- ready. publiclyMichael characterized L. Corbat, the his board’s exitVikram asvirtually S. Pandit no allies left. stitutional clients group, and then man at day’s end on Oct. 15 for his decision, interviews with peo- Vikram S. Pandit relented, saying his resignation manOne at stated day’s that end Mr. on Oct. Pandit 15 had for hischosen decision, successor. interviews with peo- As Mr. Pandit was reeling from utivesrelented, who feel saying that the his action resignation CLIMATE CHANGE what he considered just another ple close to the board describe wouldwas beneedlessly on Mr. ruthless Pandit’s and desk who Both presidential candidates agree that the world is whatresigned, he considered effective just immediately. another pleOnce close he became to the boardchairman describe this his encounter, three board mem- would be on Mr. Pandit’s desk warming and that humans are at least partly to blame, but neitherof their cam- frequent meetings on his how the chairman maneuvered tive’s ouster, they say, first meet- withinspoke five only minutes. on the condition that ELECTION 2012 of theirAnother frequent that he meetings would resign, on his ef- howyear, Mr. the O’Neill, chairman 66, meticulously maneuveredberstive’s confronted ouster, John they Havens, say, first the meet- within five minutes. paign is talking aboutELECTION solutions. BY JOHN 2012 M. BRODER, PAGE A18 calendar. fective at the end of the year.behind The thebuilt scenes a case for for the months chief execu-ing privatelybank’s chief with operating less-satisfied officer and The dramaticContinued boardroom on Page B7 coup calendar. behind the scenes for months ing privately with less-satisfied The dramatic boardroom coup Instead, Mr. Pandit, the chief ahead of that day to force Mr. board members and then draw- at the bank’s Park Avenue head- $2 BILLION CAMPAIGN President Obama and Mitt Romney are each on Instead, Mr. Pandit, the chief ahead of that day to force Mr. board members and then draw- at the bank’s Park Avenue head- $2 BILLION CAMPAIGN President Obama and Mitt Romney are eachexecutive on of Citigroup, was told Pandit out and replace him with ing in others until Mr. Pandit had quarters has rankled some peo- pace to raise more than $1 billion with their parties by Election Day. executive of Citigroup, was told Pandit out and replace him with ing in others until Mr. Pandit had quarters has rankled some peo- pace to raise more than $1 billion with their parties by Election Day.three news releases were ready. Michael L. Corbat, the board’s virtually no allies left. ple at Citi, especially senior exec- BY NICHOLAS CONFESSOREOBITUARIES AND A30-31 JO CRAVEN MCGINTY, PAGEBUSINESS A18 DAY B1-8 three news releasesSPORTSFRIDAY were ready. B9-15Michael L. Corbat, the board’s virtually no allies left. ple at Citi, especially senior exec- BY NICHOLAS CONFESSORE AND JO CRAVEN MCGINTY, PAGE A18 One stated that Mr. Pandit had chosen successor. As Mr. Pandit was reeling from utives who feel that the action One stated that Mr. Pandit had chosen successor. As Mr. Pandit was reeling from utives who feel that the action CLIMATE CHANGEJacquesBoth presidential Barzun, candidates Historian agree that thePublishers world is Planresigned, to Merge effective immediately.Giants WinOnce Tight he Game became chairman this his encounter, three board mem- was needlessly ruthless and who CLIMATE CHANGE Both presidential candidates agree that the world is resigned, effective immediately. Once he became chairman this his encounter, three board mem- was needlessly ruthless and who warming and that humans are at least partly to blame, but neither cam- Another that he would resign, ef- year, Mr. O’Neill, 66, meticulously bers confronted John Havens, the spoke only on the condition that warmingA and wide-ranging that humans are at least partly to blame,Random but Houseneither and cam- Penguin,Another two of thethat he wouldA bunt wasresign, the mostef- memorableyear, Mr. O’Neill, play as 66, meticulously bers confronted John Havens, the spoke only on the condition that paign is talking aboutscholar, solutions. essayistBY JOHN M. BRODER, PAGE A18world’s largest bookfective publishers, at the endare en- of the year.the Giants The beatbuilt the a Tigers, case for2-0, to the take chief a execu- bank’s chief operating officer and Continued on Page B7 paign is talking about solutions. BY JOHN M. BRODER, PAGE A18 fective at the end of the year. The built a case for the chief execu- bank’s chief operating officer and Continued on Page B7 and educator, he gaged in talks to combine their busi- two-games-to-none lead in the World Se- was crucial to the nesses. PAGE B1 ries. PAGE B9 creation of the dis- OBITUARIES A30-31 BUSINESS DAY B1-8 SPORTSFRIDAY B9-15 OBITUARIEScipline A30-31 of cultural BUSINESSNew Light DAY B1-8 on a Money Debate SPORTSFRIDAYWEEKEND C1-28 B9-15 Jacques Barzun,history Historian and an ex- Publishers APlan transcript to Merge from the 1944 BrettonGiants Win Tight Game Jacquesponent Barzun, of the the- Historian PublishersWoods conference, Plan to which Merge laid the foun- GiantsTeddy WinRoosevelt, Tight a Game New View A wide-ranging Random House and Penguin, two of the A bunt was the most memorable play as A wide-rangingory that the West Randomdation House for the and world’s Penguin, monetary two of system, the A bunt was the most memorableThe Museum play of as scholar, essayist world’s largest book publishers, are en- the Giants beat the Tigers, 2-0, to take a scholar, essayistwas in decline, having cultivated the world’swas largest found in book Washington. publishers, arePAGE en- B1 the Giants beat the Tigers,Natural 2-0, History’s to take a and educator, he gaged in talks to combine their busi- two-games-to-none lead in the World Se- and educator,seeds of he its own undoing. PAGE A30gaged in talks to combine their busi- two-games-to-none leadrefreshed in the memori-World Se- was crucial to the nesses. PAGE B1 ries. PAGE B9 was crucial to the nesses.NATIONAL A21-22 PAGE B1 ries. al to the 26thPAGE presi- B9 creation of the dis- creation INTERNATIONALof the dis- A4-15 dent opens (with a cipline of cultural New Light on a Money Debate cipline of cultural NewA Light Nudge on for a aMoney Deficit Debate DealWEEKEND C1-28 somewhat differ- history and an ex-Iran Said to Take NuclearAtranscript Step fromAs Republicans the 1944 Bretton and Democrats spar WEEKEND C1-28 ent context), as history and an ex- A transcript from the 1944 Bretton ponent of the the-Intelligence officials say Iran hasWoods virtu- conference,over deficit which reduction, laid the foun- some businessTeddy Roosevelt, a Newdoes View the newly ponent of the the- Woods conference, which laid the foun- Teddy Roosevelt, a New View ory that the Westally completed an undergrounddation nuclear for the leadersworld’s are monetary increasing system, pressure on The Museumrenovated of Hall of ory that the West dation for the world’s monetary system, TheMammals. Museum A re- of was in decline, havingenrichment cultivated plant, the racing aheadwas despite found in Washington.Washington to reachPAGE a deal, B1 even if it Natural History’s was in decline,international having pressure cultivated and the heavy eco- was foundraises intheir Washington. own tax bills. PAGEPAGE B1 A22 Naturalview. History’sPAGE C21 seeds of its own undoing. PAGE A30 refreshed memori- seeds of nomicits own sanctions. undoing. PAGE A30PAGE A6 refreshed memori- NATIONAL A21-22 al to the 26th presi- NATIONALNEW YORK A21-22 A26-30 al to the 26th presi- INTERNATIONAL A4-15 EDITORIAL,dent OP-ED opens A32-33 (with a INTERNATIONALBritish Abuse A4-15 Case Worsens dent opens (with a A Nudge for a Deficit Deal somewhat differ- Scotland Yard called Jimmy Savile, one A NudgeA Death for Spurs a Deficit Medical Deal Efforts Paul Krugman somewhatPAGE differ- A33 Iran Said to Take Nuclear Step As Republicans and Democrats spar ent context), as Iran Saidof Britain’s to Take most Nuclear popular TV Step hosts, “un-As RepublicansThe death of and a 12-year-old Democrats boy spar from sep- ent context), as Intelligence officials say Iran has virtu- over deficit reduction, some business does the newly Intelligencedoubtedly” officials one say of Iran the most has virtu-prolific sex over deficittic shock reduction, has prompted some nationwide business ef- does the newly ally completed an underground nuclear leaders are increasing pressure on renovated Hall of ally completedoffenders an in underground the nation’s recent nuclear history, leadersforts are by increasing medical personnel pressure to onhead off renovated Hall of enrichment plant, racing ahead despite Washington to reach a deal, even if it Mammals. A re- enrichmentas the plant, number racing of people ahead who despite said they Washingtonproblems to that reach may a deal,have contributedeven if it to U(D54G1D)y+&![!,!#!?Mammals. A re- international pressurewere assaulted and heavy by eco- him rose. raisesPAGE A12their ownhis taxdeath. bills. About NewPAGE York. A22 PAGE A26 view. PAGE C21 international pressure and heavy eco- raises their own tax bills. PAGE A22 view. PAGE C21 nomic sanctions. PAGE A6 nomic sanctions. PAGE A6 NEW YORK A26-30 EDITORIAL, OP-ED A32-33 BritishBritish Abuse AbuseCase Worsens Case Worsens NEW YORK A26-30 EDITORIAL, OP-ED A32-33 Scotland Yard called Jimmy Savile, one A Death Spurs Medical Efforts Paul Krugman PAGE A33 Scotland Yard called Jimmy Savile, one A Death Spurs Medical Efforts Paul Krugman PAGE A33 of Britain’s most popular TV hosts, “un- The death of a 12-year-old boy from sep- of Britain’s most popular TV hosts, “un- The death of a 12-year-old boy from sep- doubtedly” one of the most prolific sex tic shock has prompted nationwide ef- doubtedly” one of the most prolific sex tic shock has prompted nationwide ef- offenders in the nation’s recent history, forts by medical personnel to head off offenders in the nation’s recent history, forts by medical personnel to head off as the number of people who said they problems that may have contributed to as the number of people who said they problems that may have contributed to U(D54G1D)y+&![!,!#!? were assaulted by him rose. PAGE A12 his death. About New York. PAGE A26 U(D54G1D)y+&![!,!#!? were assaulted by him rose. PAGE A12 his death. About New York. PAGE A26 minister and then five years later as prime min- makes its deliberations public, it is not known ister. what role — if any — Mr. Wen, who is 70, has Many relatives of Wen Jiabao, including his played in most policy or regulatory decisions. son, daughter, younger brother and brother- But in some cases, his relatives have sought in-law, have become extraordinarily wealthy to profit from opportunities made possible by during his leadership, an investigation by The those decisions. New York Times shows. A review of corporate The prime minister’s younger brother, for and regulatory records indicates that the prime example, has a company that was awarded minister’s relatives — some of whom, including more than $30 million in government contracts his wife, have a knack for aggressive deal mak- and subsidies to handle wastewater treatment ing — have controlled assets worth at least $2.7 and medical waste disposal for some of China’s billion. biggest cities, according to estimates based on In many cases, the names of the relatives government records. The contracts were an- have been hidden behind layers of partnerships nounced after Mr. Wen ordered tougher regula- and investment vehicles involving friends, work tions on medical waste disposal in 2003 after the colleagues and business partners. Untangling SARS outbreak. their financial holdings provides an unusually In 2004, after the State Council, a govern- detailed look at how politically connected peo- ment body Mr. Wen presides over, exempted ple have profited from being at the intersection Ping An Insurance and other companies from of government and business as state influence rules that limited their scope, Ping An went on and private wealth converge in China’s fast- to raise $1.8 billion in an initial public offering of growing economy. stock. Partnerships controlled by Mr. Wen’s rel- Unlike most new businesses in China, the atives — along with their friends and colleagues family’s ventures sometimes received financial — made a fortune by investing in the company backing from state-owned companies, includ- before the public offering. ing China Mobile, one of the country’s biggest In 2007, the last year the stock holdings phone operators, the documents show. At other were disclosed in public documents, those part- times, the ventures won support from some of nerships held as much as $2.2 billion worth of Asia’s richest tycoons. The Times found that Mr. Ping An stock, according to an accounting of the Wen’s relatives accumulated shares in banks, investments by The Times that was verified by jewelers, tourist resorts, telecommunications outside auditors. Ping An’s overall market val- companies and infrastructure projects, some- ue is now nearly $60 billion. times by using offshore entities. Ping An said in a statement that the compa- The holdings include a villa development ny did “not know the background of the entities project in Beijing; a tire factory in northern behind our shareholders.” The statement said, China; a company that helped build some of “Ping An has no means to know the intentions Beijing’s Olympic stadiums, including the well- behind shareholders when they buy and sell our known “Bird’s Nest”; and Ping An Insurance, shares.” one of the world’s biggest financial services While Communist Party regulations call companies. for top officials to disclose their wealth and that As prime minister in an economy that re- of their immediate family members, no law or mains heavily state-driven, Mr. Wen, who is best regulation prohibits relatives of even the most known for his simple ways and common touch, senior officials from becoming deal-makers or more importantly has broad authority over the major investors — a loophole that effectively al- major industries where his relatives have made lows them to trade on their family name. Some their fortunes. Chinese companies cannot list Chinese argue that permitting the families of their shares on a stock exchange without ap- Communist Party leaders to profit from the proval from agencies overseen by Mr. Wen, for country’s long economic boom has been impor- example. He also has the power to influence in- tant to ensuring elite support for market-orient- vestments in strategic sectors like energy and ed reforms. telecommunications. Even so, the business dealings of Mr. Wen’s Because the Chinese government rarely relatives have sometimes been hidden in ways C M Y K Nxxx,2012-10-26,A,014,Bs-BK,E2

A14 Ø N THE NEW YORK TIMES INTERNATIONAL FRIDAY, OCTOBER 26, 2012 Billions in Hidden Riches for Family of China’s Premier then helped them reinvest in other lu- From Page A1 crative ventures, like real estate and fi- Nest”; and Ping An Insurance, one of nance. the world’s biggest financial services According to corporate records and companies. interviews, the businessmen often sup- As prime minister in an economy that plied accountants and office space to in- remains heavily state-driven, Mr. Wen, vestment partnerships partly controlled who is best known for his simple ways by the relatives. and common touch, more importantly “When they formed companies,” said has broad authority over the major in- one businessman who set up a company dustries where his relatives have made with members of the Wen family, “Ms. their fortunes. Chinese companies can- Zhang stayed in the background. That’s not list their shares on a stock exchange how it worked.” without approval from agencies over- seen by Mr. Wen, for example. He also The Only Son has the power to influence investments in strategic sectors like energy and tele- Late one evening early this year, the communications. prime minister’s only son, Wen Yun- Because the Chinese government song, was in the cigar lounge at Xiu, an rarely makes its deliberations public, it upscale bar and lounge at the Park Hy- is not known what role — if any — Mr. att in Beijing. He was having cocktails Wen, who is 70, has played in most pol- as Beijing’s nouveau riche gathered icy or regulatory decisions. But in some around, clutching designer bags and cases, his relatives have sought to profit wearing expensive business suits, ac- from opportunities made possible by cording to two guests who were those decisions. present. The prime minister’s younger broth- In China, the children of senior lead- er, for example, has a company that was ers are widely believed to be in a class awarded more than $30 million in gov- of their own. Known as “princelings,” ernment contracts and subsidies to they often hold Ivy League degrees, get handle wastewater treatment and med- V.I.P. treatment, and are even offered ical waste disposal for some of China’s preferred pricing on shares in hot stock biggest cities, according to estimates offerings. based on government records. The con- They are also known as people who tracts were announced after Mr. Wen can get things done in China’s heavily ordered tougher regulations on medical regulated marketplace, where the state waste disposal in 2003 after the SARS controls access. And in recent years, outbreak. few princelings have been as bold as the In 2004, after the State Council, a gov- younger Mr. Wen, who goes by the Eng- ernment body Mr. Wen presides over, lish name Winston and is about 40 years exempted Ping An Insurance and other old. companies from rules that limited their A Times review of Winston Wen’s in- scope, Ping An went on to raise $1.8 bil- vestments, and interviews with people lion in an initial public offering of stock. who have known him for years, show Partnerships controlled by Mr. Wen’s that his deal-making has been extensive relatives — along with their friends and and lucrative, even by the standards of colleagues — made a fortune by in- his princeling peers. vesting in the company before the pub- State-run giants like China Mobile lic offering. LINTAO ZHANG/GETTY IMAGES have formed start-ups with him. In re- In 2007, the last year the stock hold- cent years, Winston Wen has been in ings were disclosed in public docu- talks with Hollywood studios about a fi- ments, those partnerships held as much nancing deal. as $2.2 billion worth of Ping An stock, Concerned that China does not have according to an accounting of the in- an elite boarding school for Chinese stu- vestments by The Times that was ver- dents, he recently hired the headmas- ified by outside auditors. Ping An’s ters of Choate and Hotchkiss in Con- overall market value is now nearly $60 necticut to oversee the creation of a $150 billion. million private school now being built in Ping An said in a statement that the the Beijing suburbs. company did “not know the background Winston Wen and his wife, moreover, of the entities behind our sharehold- have stakes in the technology industry ers.” The statement said, “Ping An has and an electric company, as well as an no means to know the intentions behind indirect stake in Union Mobile Pay, the shareholders when they buy and sell government-backed online payment our shares.” platform — all while living in the prime MARK RALSTON/AGENCE FRANCE-PRESSE — GETTY IMAGES While Communist Party regulations minister’s residence, in central Beijing, call for top officials to disclose their Prime Minister Wen Jiabao, middle, delivered a toast last month at a government banquet. Top, according to corporate records and peo- wealth and that of their immediate fam- a $150 million private school is being built in the Beijing suburbs. Bottom left, Mr. Wen with his ple familiar with the family’s invest- ily members, no law or regulation pro- family in the 1980s. Bottom right, the “Bird’s Nest” stadium for the Beijing Olympics. ments. hibits relatives of even the most senior “He’s not shy about using his influ- officials from becoming deal-makers or ence to get things done,” said one ven- major investors — a loophole that ef- ture capitalist who regularly meets with fectively allows them to trade on their want to be written about,” Ms. Duan It is no secret in China’s elite circles dent of the World Jewelry Confeder- Winston Wen. family name. Some Chinese argue that said, “so I had my relatives find some that the prime minister’s wife, Zhang ation in Switzerland. “She was bridging The younger Mr. Wen declined to permitting the families of Communist other people to hold these shares for Beili, is rich, and that she has helped relations between partners — Chinese comment. But in a telephone interview, Party leaders to profit from the coun- me.” control the nation’s jewelry and gem and foreign partners.” his wife, Yang Xiaomeng, said her hus- try’s long economic boom has been im- But it was an “accident,” she said, trade. But her lucrative diamond busi- As early as 1992, people who worked band had been unfairly criticized for his portant to ensuring elite support for that her company chose the relatives of nesses became an off-the-charts suc- with Ms. Zhang said, she had begun to business dealings. market-oriented reforms. the prime minister as the listed share- cess only as her husband moved into blur the line between government offi- “Everything that has been written Even so, the business dealings of Mr. holders — a process that required regis- the country’s top leadership ranks, the cial and businesswoman. As head of the about him has been wrong,” she said. Wen’s relatives have sometimes been tering their official ID numbers and ob- review of corporate and regulatory state-owned China Mineral and Gem “He’s really not doing that much busi- hidden in ways that suggest the rela- taining their signatures. Until pre- records by The Times found. Corporation, she began investing the ness anymore.” tives are eager to avoid public scrutiny, sented with the names of the investors A geologist with an expertise in gem- state company’s money in start-ups. Winston Wen was educated in Beijing the records filed with Chinese regula- by The Times, she said, she had no idea stones, Ms. Zhang is largely unknown And by the time her husband was and then earned an engineering degree tory authorities show. Their ownership that they had selected the relatives of among ordinary Chinese. She rarely named vice premier, in 1998, she was from the Beijing Institute of Technology. stakes are often veiled by an intricate Wen Jiabao. travels with the prime minister or ap- busy setting up business ventures with He went abroad and earned a master’s web of holdings as many as five steps The review of the corporate and regu- pears with him, and there are few offi- friends and relatives. degree in engineering materials from the University of Windsor, in Canada, removed from the operating companies, latory records, which covers 1992 to cial photographs of the couple together. The state company she ran invested and an M.B.A. from the Kellogg School according to the review. 2012, found no holdings in Mr. Wen’s And while people who have worked in a group of affiliated diamond compa- of Business at Northwestern University In the case of Mr. Wen’s mother, The name. And it was not possible to de- with her say she has a taste for jade and nies, according to public records. Many in Evanston, Ill., just outside Chicago. Times calculated her stake in Ping An termine from the documents whether fine diamonds, they say she usually of them were run by Ms. Zhang’s rela- When he returned to China in 2000, he — valued at $120 million in 2007 — by he recused himself from any decisions dresses modestly, does not exude glam- tives — or colleagues who had worked helped set up three successful technol- examining public records and govern- that might have affected his relatives’ our and prefers to wield influence be- with her at the National Gemstone Test- ogy companies in five years, according ment-issued identity cards, and by fol- holdings, or whether they received hind the scenes, much like the relatives ing Center. to people familiar with those deals. Two lowing the ownership trail to three Chi- preferential treatment on investments. of other senior leaders. In 1993, for instance, the state compa- of them were sold to Hong Kong busi- nese investment entities. The name re- For much of his tenure, Wen Jiabao The State Department documents re- ny Ms. Zhang ran helped found Beijing nessmen, one to the family of Li Ka- corded on his mother’s shares was Tai- has been at the center of rumors and leased by WikiLeaks included a sugges- Diamond, a big jewelry retailer. A year shing, one of the wealthiest men in Asia. hong, a holding company registered in conjecture about efforts by his relatives tion that Mr. Wen had once considered later, one of her younger brothers, Winston Wen’s earliest venture, an Tianjin, the prime minister’s home- to profit from his position. Yet until the divorcing Ms. Zhang because she had Zhang Jianming, and two of her govern- Internet data services provider called town. review by The Times, there has been no exploited their relationship in her dia- ment colleagues personally acquired 80 Unihub Global, was founded in 2000 The apparent efforts to conceal the detailed accounting of the family’s rich- mond trades. Taiwanese television re- percent of the company, according to with $2 million in start-up capital, ac- wealth reflect the highly charged poli- es. ported in 2007 that Ms. Zhang had shareholder registers. Beijing Diamond tics surrounding the country’s ruling His wife, Zhang Beili, is one of the cording to Hong Kong and Beijing cor- bought a pair of jade earrings worth invested in Shenzhen Diamond, which porate filings. Financing came from a elite, many of whom are also enormous- country’s leading authorities on jewelry about $275,000 at a Beijing trade show, was controlled by her brother-in-law, ly wealthy but reluctant to draw atten- and gemstones and is an accomplished tight-knit group of relatives and his though the source — a Taiwanese trad- Wen Jiahong, the prime minister’s mother’s former colleagues from gov- tion to their riches. When Bloomberg businesswoman in her own right. By er — later backed off the claim and Chi- younger brother. News reported in June that the ex- managing state diamond companies ernment and the diamond trade, as well nese government censors moved swift- Among the successful undertakings as an associate of Cheng Yu-tung, patri- tended family of Vice President Xi Jin- that were later privatized, The Times ly to block coverage of the subject in was Sino-Diamond, a venture financed ping, set to become China’s next presi- found, she helped her relatives parlay arch of Hong Kong’s second-wealthiest China, according to news reports at the by the state-owned China Mineral and family. The firm’s earliest customers dent, had amassed hundreds of millions their minority stakes into a billion-dol- time. Gem Corporation, which she headed. of dollars in assets, the Chinese govern- lar portfolio of insurance, technology were state-owned brokerage houses “Her business activities are known to The company had business ties with a and Ping An, in which the Wen family ment blocked access inside the country and real estate ventures. everyone in the leadership,” said one state-owned company managed by an- to the Bloomberg Web site. The couple’s only son sold a technol- has held a large financial stake. banker who worked with relatives of other brother, Zhang Jiankun, who He made an even bolder move in “In the senior leadership, there’s no ogy company he started to the family of Wen Jiabao. The banker said it was not worked as an official in Jiaxing, Ms. family that doesn’t have these prob- Hong Kong’s richest man, Li Ka-shing, 2005, by pushing into private equity unusual for her office to call upon busi- Zhang’s hometown, in Zhejiang Prov- when he formed New Horizon Capital lems,” said a former government col- for $10 million, and used another in- nesspeople. “And if you get that call, ince. league of Wen Jiabao who has known vestment vehicle to establish New Hori- with a group of Chinese-born class- how can you say no?” In the summer of 1999, after securing mates from Northwestern. The firm him for more than 20 years and who zon Capital, now one of China’s biggest Zhang Beili first gained influence in agreements to import diamonds from spoke on the condition of anonymity. quickly raised $100 million from invest- private equity firms, with partners like the 1990s, while working as a regulator Russia and South Africa, Sino-Diamond “His enemies are intentionally trying to ors, including SBI Holdings, a division the government of Singapore, accord- at the Ministry of Geology. At the time, went public, raising $50 million on the smear him by letting this leak out.” ing to records and interviews with of the Japanese group SoftBank, and China’s jewelry market was still in its Shanghai Stock Exchange. The offering Temasek, the Singapore government in- The Times presented its findings to bankers. infancy. netted Ms. Zhang’s family about $8 mil- the Chinese government for comment. vestment fund. The prime minister’s younger broth- While her husband was serving in lion, according to corporate filings. The Foreign Ministry declined to re- Under Mr. Wen, New Horizon estab- er, Wen Jiahong, controls $200 million in China’s main leadership compound, Although she was never listed as a spond to questions about the invest- lished itself as a leading private equity assets, including wastewater treatment known as Zhongnanhai, Ms. Zhang was shareholder, former colleagues and ments, the prime minister or his rela- plants and recycling businesses, the firm, investing in biotech, solar, wind setting industry standards in the jew- business partners say Ms. Zhang’s ear- tives. Members of Mr. Wen’s family also records show. and construction equipment makers. elry and gem trade. She helped create ly diamond partnerships were the nu- declined to comment or did not respond Since it began operations, the firm has As prime minister, Mr. Wen has the National Gemstone Testing Center cleus of a larger portfolio of companies to requests for comment. staked out a position as a populist and a returned about $430 million to invest- in Beijing, and the Shanghai Diamond she would later help her family and col- ors, a fourfold profit, according to SBI Duan Weihong, a wealthy business- reformer, someone whom the state-run Exchange, two of the industry’s most leagues gain a stake in. Holdings. woman whose company, Taihong, was media has nicknamed “the People’s powerful institutions. The Times found no indication that the investment vehicle for the Ping An Premier” and “Grandpa Wen” because “Their first fund was dynamite,” said In a country where the state has long Wen Jiabao used his political clout to in- shares held by the prime minister’s of his frequent outings to meet ordinary Kathleen Ng, editor of Asia Private Eq- dominated the marketplace, jewelry fluence the diamond companies his rel- mother and other relatives, said the in- people, especially in moments of crisis uity Review, an industry publication in regulators often decided which compa- atives invested in. But former business vestments were actually her own. Ms. like natural disasters. Hong Kong. “And that allowed them to nies could set up diamond-processing partners said that the family’s success raise a lot more money.” Duan, who comes from the prime min- While it is unclear how much the factories, and which would gain entry to in diamonds, and beyond, was often bol- ister’s hometown and is a close friend of prime minister knows about his fam- Today, New Horizon has more than the retail jewelry market. State reg- stered with financial backing from his wife, said ownership of the shares ily’s wealth, State Department docu- $2.5 billion under management. ulators even formulated rules that re- wealthy businessmen who sought to was listed in the names of Mr. Wen’s ments released by the WikiLeaks or- Some of Winston Wen’s deal-making, quired diamond sellers to buy certif- curry favor with the prime minister’s relatives in an effort to conceal the size ganization in 2010 included a cable that though, has attracted unwanted atten- icates of authenticity for any diamond of Ms. Duan’s own holdings. suggested Mr. Wen was aware of his family. tion for the prime minister. sold in China, from the government-run “When I invested in Ping An I didn’t relatives’ business dealings and unhap- “After Wen became prime minister, In 2010, when New Horizon acquired testing center in Beijing, which Ms. py about them. his wife sold off some of her diamond in- a 9 percent stake in a company called Zhang managed. “Wen is disgusted with his family’s vestments and moved into new things,” Sihuan Pharmaceuticals just two ONLINE: WEN’S RISE IN CHINA activities, but is either unable or unwill- As a result, when executives from said a Chinese executive who did busi- months before its public offering, the ing to curtail them,” a Chinese-born ex- Cartier or De Beers visited China with ness with the family. He asked not to be Hong Kong Stock Exchange said the A video traces the life of Wen Jiabao, hopes of selling diamonds and jewelry named because of fear of government late-stage investment violated its rules the outgoing prime minister of China ecutive working at an American compa- ny in Shanghai told American diplo- here, they often went to visit Ms. Zhang, retaliation. Corporate records show that and forced the firm to return the stake. and the state-run media’s favorite mats, according to the 2007 cable. who became known as China’s “dia- beginning in the late 1990s, a series of Still, New Horizon made a $46.5 million populist leader. mond queen.” rich businessmen took turns buying up profit on the sale. nytimes.com/business “She’s the most important person large stakes in the diamond companies, Soon after, New Horizon announced China’s ‘Diamond Queen’ there,” said Gaetano Cavalieri, presi- often from relatives of Mr. Wen, and that Winston Wen had handed over day- that suggest the relatives are eager to avoid pub- relatives find some other people to hold these lic scrutiny, the records filed with Chinese regu- shares for me.” latory authorities show. Their ownership stakes But it was an “accident,” she said, that her are often veiled by an intricate web of holdings as company chose the relatives of the prime minis- many as five steps removed from the operating ter as the listed shareholders — a process that companies, according to the review. required registering their official ID numbers In the case of Mr. Wen’s mother, The Times and obtaining their signatures. Until presented calculated her stake in Ping An — valued at $120 with the names of the investors by The Times, million in 2007 — by examining public records she said, she had no idea that they had selected and government-issued identity cards, and by the relatives of Wen Jiabao. following the ownership trail to three Chinese The review of the corporate and regulato- investment entities. The name recorded on his ry records, which covers 1992 to 2012, found no mother’s shares was Taihong, a holding com- holdings in Mr. Wen’s name. And it was not pos- pany registered in Tianjin, the prime minister’s sible to determine from the documents wheth- hometown. er he recused himself from any decisions that The apparent efforts to conceal the wealth might have affected his relatives’ holdings, or reflect the highly charged politics surround- whether they received preferential treatment ing the country’s ruling elite, many of whom on investments. are also enormously wealthy but reluctant to For much of his tenure, Wen Jiabao has been draw attention to their riches. When Bloomberg at the center of rumors and conjecture about ef- News reported in June that the extended fam- forts by his relatives to profit from his position. ily of Vice President Xi Jinping, set to become Yet until the review by The Times, there has been China’s next president, had amassed hundreds no detailed accounting of the family’s riches. of millions of dollars in assets, the Chinese gov- His wife, Zhang Beili, is one of the country’s ernment blocked access inside the country to leading authorities on jewelry and gemstones the Bloomberg Web site. and is an accomplished businesswoman in her “In the senior leadership, there’s no family own right. By managing state diamond com- that doesn’t have these problems,” said a for- panies that were later privatized, The Times mer government colleague of Wen Jiabao who found, she helped her relatives parlay their mi- has known him for more than 20 years and who nority stakes into a billion-dollar portfolio of in- spoke on the condition of anonymity. “His en- surance, technology and real estate ventures. emies are intentionally trying to smear him by The couple’s only son sold a technol- letting this leak out.” ogy company he started to the family of Hong The Times presented its findings to the Kong’s richest man, Li Ka-shing, for $10 million, Chinese government for comment. The For- and used another investment vehicle to estab- eign Ministry declined to respond to questions lish New Horizon Capital, now one of China’s about the investments, the prime minister or biggest private equity firms, with partners like his relatives. Members of Mr. Wen’s family also the government of Singapore, according to re- declined to comment or did not respond to re- cords and interviews with bankers. quests for comment. The prime minister’s younger brother, Wen Duan Weihong, a wealthy businesswoman Jiahong, controls $200 million in assets, includ- whose company, Taihong, was the investment ing wastewater treatment plants and recycling vehicle for the Ping An shares held by the prime businesses, the records show. minister’s mother and other relatives, said the As prime minister, Mr. Wen has staked out investments were actually her own. Ms. Duan, a position as a populist and a reformer, someone who comes from the prime minister’s home- whom the state-run media has nicknamed “the town and is a close friend of his wife, said own- People’s Premier” and “Grandpa Wen” because ership of the shares was listed in the names of of his frequent outings to meet ordinary people, Mr. Wen’s relatives in an effort to conceal the especially in moments of crisis like natural di- size of Ms. Duan’s own holdings. sasters. “When I invested in Ping An I didn’t want to While it is unclear how much the prime min- be written about,” Ms. Duan said, “so I had my ister knows about his family’s wealth, State De- partment documents released by the WikiLeaks While her husband was serving in China’s organization in 2010 included a cable that sug- main leadership compound, known as Zhong- gested Mr. Wen was aware of his relatives’ busi- nanhai, Ms. Zhang was setting industry stan- ness dealings and unhappy about them. dards in the jewelry and gem trade. She helped “Wen is disgusted with his family’s activi- create the National Gemstone Testing Center in ties, but is either unable or unwilling to curtail Beijing, and the Shanghai Diamond Exchange, them,” a Chinese-born executive working at an two of the industry’s most powerful institutions. American company in Shanghai told American In a country where the state has long domi- diplomats, according to the 2007 cable. nated the marketplace, jewelry regulators often decided which companies could set up diamond- China’s ‘Diamond Queen’ processing factories, and which would gain entry It is no secret in China’s elite circles that the to the retail jewelry market. State regulators even prime minister’s wife, Zhang Beili, is rich, and formulated rules that required diamond sellers to that she has helped control the nation’s jewelry buy certificates of authenticity for any diamond and gem trade. But her lucrative diamond busi- sold in China, from the government-run testing nesses became an off-the-charts success only as center in Beijing, which Ms. Zhang managed. her husband moved into the country’s top lead- As a result, when executives from Cartier ership ranks, the review of corporate and regu- or De Beers visited China with hopes of selling latory records by The Times found. diamonds and jewelry here, they often went to A geologist with an expertise in gemstones, visit Ms. Zhang, who became known as China’s Ms. Zhang is largely unknown among ordinary “diamond queen.” Chinese. She rarely travels with the prime min- “She’s the most important person there,” ister or appears with him, and there are few of- said Gaetano Cavalieri, president of the World ficial photographs of the couple together. And Jewelry Confederation in Switzerland. “She was while people who have worked with her say she bridging relations between partners — Chinese has a taste for jade and fine diamonds, they say and foreign partners.” she usually dresses modestly, does not exude As early as 1992, people who worked with glamour and prefers to wield influence behind Ms. Zhang said, she had begun to blur the line the scenes, much like the relatives of other se- between government official and businesswom- nior leaders. an. As head of the state-owned China Mineral The State Department documents released and Gem Corporation, she began investing the by WikiLeaks included a suggestion that Mr. state company’s money in start-ups. And by the Wen had once considered divorcing Ms. Zhang time her husband was named vice premier, in because she had exploited their relationship 1998, she was busy setting up business ventures in her diamond trades. Taiwanese television with friends and relatives. reported in 2007 that Ms. Zhang had bought a The state company she ran invested in a pair of jade earrings worth about $275,000 at a group of affiliated diamond companies, accord- Beijing trade show, though the source — a Tai- ing to public records. Many of them were run wanese trader — later backed off the claim and by Ms. Zhang’s relatives — or colleagues who Chinese government censors moved swiftly to had worked with her at the National Gemstone block coverage of the subject in China, accord- Testing Center. ing to news reports at the time. In 1993, for instance, the state company Ms. “Her business activities are known to ev- Zhang ran helped found Beijing Diamond, a big eryone in the leadership,” said one banker who jewelry retailer. A year later, one of her younger worked with relatives of Wen Jiabao. The bank- brothers, Zhang Jianming, and two of her gov- er said it was not unusual for her office to call ernment colleagues personally acquired 80 per- upon businesspeople. “And if you get that call, cent of the company, according to shareholder how can you say no?” registers. Beijing Diamond invested in Shen- Zhang Beili first gained influence in the zhen Diamond, which was controlled by her 1990s, while working as a regulator at the Min- brother-in-law, Wen Jiahong, the prime minis- istry of Geology. At the time, China’s jewelry ter’s younger brother. market was still in its infancy. Among the successful undertakings was Sino-Diamond, a venture financed by the state- cocktails as Beijing’s nouveau riche gathered owned China Mineral and Gem Corporation, around, clutching designer bags and wear- which she headed. The company had business ing expensive business suits, according to two ties with a state-owned company managed by guests who were present. another brother, Zhang Jiankun, who worked as In China, the children of senior leaders are an official in Jiaxing, Ms. Zhang’s hometown, in widely believed to be in a class of their own. Zhejiang Province. Known as “princelings,” they often hold Ivy In the summer of 1999, after securing agree- League degrees, get V.I.P. treatment, and are ments to import diamonds from Russia and even offered preferred pricing on shares in hot South Africa, Sino-Diamond went public, rais- stock offerings. ing $50 million on the Shanghai Stock Exchange. They are also known as people who can get The offering netted Ms. Zhang’s family about $8 things done in China’s heavily regulated mar- million, according to corporate filings. ketplace, where the state controls access. And Although she was never listed as a share- in recent years, few princelings have been as holder, former colleagues and business part- bold as the younger Mr. Wen, who goes by the ners say Ms. Zhang’s early diamond partner- English name Winston and is about 40 years old. ships were the nucleus of a larger portfolio of A Times review of Winston Wen’s invest- companies she would later help her family and ments, and interviews with people who have colleagues gain a stake in. known him for years, show that his deal-making The Times found no indication that Wen Jia- has been extensive and lucrative, even by the bao used his political clout to influence the dia- standards of his princeling peers. mond companies his relatives invested in. But State-run giants like China Mobile have former business partners said that the family’s formed start-ups with him. In recent years, success in diamonds, and beyond, was often Winston Wen has been in talks with Hollywood bolstered with financial backing from wealthy studios about a financing deal. businessmen who sought to curry favor with Concerned that China does not have an elite the prime minister’s family. boarding school for Chinese students, he recent- “After Wen became prime minister, his wife ly hired the headmasters of Choate and Hotch- sold off some of her diamond investments and kiss in Connecticut to oversee the creation of a moved into new things,” said a Chinese execu- $150 million private school now being built in tive who did business with the family. He asked the Beijing suburbs. not to be named because of fear of government Winston Wen and his wife, moreover, have retaliation. Corporate records show that begin- stakes in the technology industry and an elec- ning in the late 1990s, a series of rich business- tric company, as well as an indirect stake in men took turns buying up large stakes in the Union Mobile Pay, the government-backed on- diamond companies, often from relatives of Mr. line payment platform — all while living in the Wen, and then helped them reinvest in other lu- prime minister’s residence, in central Beijing, crative ventures, like real estate and finance. according to corporate records and people fa- According to corporate records and inter- miliar with the family’s investments. views, the businessmen often supplied accoun- “He’s not shy about using his influence to tants and office space to investment partner- get things done,” said one venture capitalist ships partly controlled by the relatives. who regularly meets with Winston Wen. “When they formed companies,” said one The younger Mr. Wen declined to comment. businessman who set up a company with mem- But in a telephone interview, his wife, Yang bers of the Wen family, “Ms. Zhang stayed in the Xiaomeng, said her husband had been unfairly background. That’s how it worked.” criticized for his business dealings. “Everything that has been written about The Only Son him has been wrong,” she said. “He’s really not Late one evening early this year, the prime doing that much business anymore.” minister’s only son, Wen Yunsong, was in the Winston Wen was educated in Beijing and cigar lounge at Xiu, an upscale bar and lounge then earned an engineering degree from the at the Park Hyatt in Beijing. He was having Beijing Institute of Technology. He went abroad C M Y K Nxxx,2012-10-26,A,015,Bs-BK,E2

THE NEW YORK TIMES INTERNATIONAL FRIDAY, OCTOBER 26, 2012 Ø N A15

KEY Member of The family The Wen Family Empire Wen family built a YANG ZHIYUN MOTHER Beginning with diamonds in the 1990s, the relatives of Wen Jiabao amassed a fortune by fortune by Colleague of Also known as Yang Xiu’an, forming a complex business network that bought stakes in sectors as varied as real forming Wen family the 90-year-old mother estate and telecommunications. Corporate records reviewed by The Times show that a business owned investments in tight-knit group of about 20 relatives and friends made investments that were sometimes Value of networks Ping An Insurance worth $1 million aided by Asia’s wealthiest tycoons. By far the biggest source of the wealth came from Ping An stake aided by $120 million. investments in Ping An Insurance, China’s biggest financial services company. wealthy Business $120 million relationship tycoons Blue type Operational company WEN JIABAO ZHANG BEILI PRIME MINISTER OF CHINA An expert in gems and a force in the Gray type Shell company Nicknamed Grandpa Wen nation’s diamond trade. She met because of his concern for the Wen Jiabao while both were working underprivileged, he has called as government BROTHER official corruption a threat to geologists in WIFE WIFE’S BROTHER the ruling Communist Party. Gansu Province. WEN JIAHONG AND WIFE He controls energy, engineering and waste treatment companies; his wife held a major stake in Ping An. SON’S WIFE SON DAUGHTER $110 million ZHANG JIANMING YANG XIAOMENG AND PARENTS Invested in diamond companies She holds shares in family-related with his sister's colleagues. companies, including a company that owns part of Union Mobile Pay. Her parents once held a big Ping An stake.

$416 million WEN YUNSONG PRESIDENT BROTHER’S WEN RUCHUN COLLEAGUE Holds engineering degrees, and Worked at Credit an M.B.A. from Northwestern’s Suisse. Held shares LEGAL REPRESENTATIVE Sino- INVESTOR Kellogg School of Business. of a Chinese jewelry ZHANG YUHONG Co-founder of New Horizon Diamond Hanyang Vice president at Hanyang company called Capital. Chairman of China WIFE’S BROTHER VICE PRESIDENT Investment. Grew up in Tianjin. Gallop. Investment Satellite Communications. Helps control investment firms tied to the Wen family. INVESTOR DIRECTOR $176 million CO-FOUNDER C.E.O.

DIRECTOR SON’S COLLEAGUE LEGAL New ZHANG JIANKUN REPRESENTATIVE Horizon Former government bureaucrat who invested Sheng Capital CO-FOUNDER in diamond companies backed by his sister, as Churui well as real estate and highway infrastructure. C.E.O. $1 million* National Trust DIRECTOR

INVESTOR YU JIANMING Worked briefly at McKinsey in Los Angeles. Co-founded the private equity firm New Horizon Capital. Helps control a string of INVESTOR investment vehicles tied to the Wen family. DIRECTOR

LEGAL REPRESENTATIVE WIFE’S Go2Joy COLLEAGUE DIRECTOR

INVESTOR

INVESTOR Union INVESTOR Mobile Pay WANG ZHUANGLI

INVESTOR Worked for a diamond company linked to Zhang Beili. A shareholder in several Wen family-related companies, including Sheng Churui and Xuanda. INVESTOR $74 million

INVESTOR

INVESTOR DIRECTOR Xuanda INVESTOR INVESTOR Unihub INVESTOR Xinyuan INVESTOR Tianjin Liandong Taihong INVESTOR

FORMED A JOINT VENTURE LEGAL SOLD TO MERGED WITH SOLD TO A SUBSIDIARY OWNER WITH NEW WORLD CYBERBASE OWNER REPRESENTATIVE DALIAN HAICHANG P.C.C.W. INVESTOR OF CHINA.COM

DUAN CHENG ZHENG QU LI PETER WEIHONG YU-TUNG JIANYUAN NAIJIE KA-SHING YIP Beijing Hong Kong Hong Kong Dalian Hong Kong Hong Kong

$1.3 billion $14 billion $1.4 billion* $75 million

One of China’s wealthiest Hong Kong’s second-richest Also known as Vincent Cheng. Wealthy businessman from The richest man in Hong Kong The former chief executive of the women and the founder of man. Controls New World A reclusive philanthropist and northern China who controls for much of the last decade, CDC Corporation, a Chinese Taihong, the Great Ocean Group Development, with real estate, business associate of the Hong Dalian Haichang. Has interests with a net worth of $22 billion. technology company. One of his and Airport City Logistics. Her infrastructure and retail Kong tycoon Cheng Yu-tung. in chemicals, plastics and Together with his son, Richard company’s major shareholders Kaifeng Foundation gives to business holdings, including Once controlled three diamonds. Forbes puts his net Li, controls the Hong Kong was New World Development, Harvard University and Beijing’s the world’s biggest jewelry investment vehicles with 300 worth at $770 million. conglomerate Hutchison which is controlled by the Hong Tsinghua University. store chain, Chow Tai Fook. million shares in Ping An. Whampoa. Kong tycoon Cheng Yu-tung.

*Values of Ping An shares are figured as of January or October 2007 (latest records available), except where asterisked. Asterisked values are as of 2004. Shares attributed to Duan Weihong were owned through her mother. Those owned by Qu Naijie were through his company, Dalian Haichang. Those owned by Cheng Yu-tung and Zheng Jianyuan were through multiple investment vehicles. GUILBERT GATES FOR THE NEW YORK TIMES to-day operations and taken up a posi- parties. relatives has been Cheng Yu-tung, who their family assets. league of Wen Jiahong, the prime min- tion at the China Satellite Communica- Established in Tianjin, Taihong had controls the Hong Kong conglomerate Whether Mr. Wen has made such dis- ister’s younger brother. The associates tions Corporation, a state-owned com- spectacular returns. In 2002, the compa- New World Development and is one of closures for his own family is unclear, did not return telephone calls seeking pany that has ties to the Chinese space ny paid about $65 million to acquire a 3 the richest men in Asia, worth about $15 since the Communist Party does not re- comment. program. He has since been named percent stake in Ping An before its ini- billion, according to Forbes. lease such information. Even so, many Revelations about the Wen family’s chairman. tial public offering, according to corpo- In the 1990s, New World was seeking of the holdings found by The Times wealth could weaken him politically. rate records and Ms. Duan’s graduate a foothold in mainland China for a sister would not need to be disclosed under Next month, at the 18th Party Con- school thesis. Five years later, those company that specializes in high-end the rules since they are not held in the gress in Beijing, the Communist Party is The Tycoons shares were worth $3.7 billion retail jewelry. The retail chain, Chow name of the prime minister’s immediate expected to announce a new generation In the late 1990s, Duan Weihong was The company’s Hong Kong affiliate, Tai Fook, opened its first store in China family — his wife, son and daughter. of leaders. But the selection process has managing an office building and several Great Ocean, also run by Ms. Duan, lat- in 1998. Eighty percent of the $2.7 billion in as- already been marred by one of the other properties in Tianjin, the prime er formed a joint venture with the Bei- Mr. Cheng and his associates invest- sets identified in The Times’s investiga- worst political scandals in decades, the minister’s hometown in northern China, jing government and acquired a huge ed in a diamond venture backed by the tion and verified by the outside auditors downfall of Bo Xilai, the Chongqing par- through her property company, Tai- tract of land adjacent to Capital In- relatives of Mr. Wen and co-invested were held by, among others, the prime ty boss, who was vying for a top posi- hong. She was in her 20s and had stud- ternational Airport. Today, the site is with them in an array of corporate enti- minister’s mother, his younger brother, tion. ied at the Nanjing University of Science home to a sprawling cargo and logistics ties, including Sino-Life, National Trust two brothers-in-law, a sister-in-law, In Beijing, Wen Jiabao is expected to and Technology. center. Last year, Great Ocean sold its and Ping An, according to records and daughter-in-law and the parents of his step down as prime minister because he Around 2002, Ms. Duan went into 53 percent stake in the project to a Sin- interviews with some of those involved. son’s wife, none of whom is subject to has reached retirement age. Political business with several relatives of Wen gapore company for nearly $400 mil- Those investments by Mr. Cheng are party disclosure rules. The total value of analysts say that even after leaving of- Jiabao, transforming her property com- lion. now worth at least $5 billion, according the relatives’ stake in Ping An is based fice he could remain a strong backstage pany into an investment vehicle of the That deal and several other invest- to the corporate filings. Chow Tai Fook, on calculations by The Times that were political force. But documents showing same name. The company helped make ments, in luxury hotels, Beijing villa de- the jewelry chain, has also flourished. confirmed by the auditors. The total in- that his relatives amassed a fortune Ms. Duan very wealthy. velopments and the Hong Kong-listed Today, China accounts for 60 percent of cludes shares held by the relatives that during his tenure could diminish his It is not known whether Ms. Duan, BBMG, one of China’s largest building the chain’s $4.2 billion in annual reve- were sold between 2004 and 2006, and standing, the analysts said. now 43, is related to the prime minister. materials companies, have been instru- nue. the value of the remaining shares in late “This will affect whatever residual In a series of interviews, she first said mental to Ms. Duan’s accumulation of Mr. Cheng, 87, could not be reached 2007, the last time the holdings were power Wen has,” said Minxin Pei, an ex- she did not know any members of the riches, according to The Times’s review for comment. Calls to New World De- publicly disclosed. pert on Chinese leadership and a profes- Wen family, but later described herself of corporate records. velopment were not returned. Legal experts said that determining sor of government at Claremont Mc- as a friend of the family and particular- The review also showed that over the the precise value of holdings in China Kenna College in California. ly close to Zhang Beili, the prime min- past decade there have been nearly could be difficult because there might The prime minister’s supporters say ister’s wife. As happened to a handful of three dozen individual shareholders of Fallout for Premier be undisclosed side agreements about he has not personally benefited from his other Chinese entrepreneurs, Ms. Taihong, many of whom are either rela- In the winter of 2007, just before he the true beneficiaries. extended family’s business dealings, Duan’s fortunes soared as she teamed tives of Wen Jiabao or former col- began his second term as prime min- “Complex corporate structures are and may not even be knowledgeable up with the relatives and their network leagues of his wife. ister, Wen Jiabao called for new meas- not necessarily insidious,” said Curtis J. about the extent of them. of friends and colleagues, though she The other wealthy entrepreneurs ures to fight corruption, particularly Milhaupt, a Columbia University Law Last March, the prime minister hint- described her relationship with them in- who have worked with the prime min- among high-ranking officials. School professor who has studied Chi- ed that he was at least aware of the per- volving the shares in Ping An as ex- ister’s relatives declined to comment “Leaders at all levels of government na’s corporate group structures. “But in sistent rumors about his relatives. Dur- isting on paper only and having no fi- for this article. Ms. Duan strongly de- should take the lead in the antigraft a system like China’s, where corporate ing a nationally televised news confer- nancial component. nied having financial ties to the prime drive,” he told a gathering of high-level ownership and political power are close- ence in Beijing, he insisted that he had Ms. Duan and other wealthy busi- minister or his relatives and said she party members in Beijing. “They ly intertwined, shell companies magnify “never pursued personal gain” in public nesspeople — among them, six billion- was only trying to avoid publicity by should strictly ensure that their family questions about who owns what and office. aires from across China — have been in- listing others as owning Ping An members, friends and close subordi- where the money came from.” “I have the courage to face the people strumental in getting multimillion-dol- shares. “The money I invested in Ping nates do not abuse government influ- Among the investors in the Wen fam- and to face history,” he said in an emo- lar ventures off the ground and, at cru- An was completely my own,” said Ms. ence.” ily ventures are longtime business asso- tional session. “There are people who cial times, helping members of the Wen Duan, who has served as a member of The speech was consistent with the ciates, former colleagues and college will appreciate what I have done, but family set up investment vehicles to the Ping An board of supervisors. “Ev- prime minister’s earlier drive to tough- classmates, including Yu Jianming, who there are also people who will criticize profit from them, according to invest- erything I did was legal.” en disclosure rules for public servants, attended Northwestern with Winston me. Ultimately, history will have the fi- ment bankers who have worked with all Another wealthy partner of the Wen and to require senior officials to reveal Wen, and Zhang Yuhong, a longtime col- nal say.” and earned a master’s degree in engineering Horizon made a $46.5 million profit on the sale. materials from the University of Windsor, in Soon after, New Horizon announced that Canada, and an M.B.A. from the Kellogg School Winston Wen had handed over day-to-day op- of Business at Northwestern University in erations and taken up a position at the China Evanston, Ill., just outside Chicago. Satellite Communications Corporation, a state- When he returned to China in 2000, he owned company that has ties to the Chinese helped set up three successful technology com- space program. He has since been named chair- panies in five years, according to people famil- man. iar with those deals. Two of them were sold to Hong Kong businessmen, one to the family of Li The Tycoons Ka-shing, one of the wealthiest men in Asia. In the late 1990s, Duan Weihong was man- Winston Wen’s earliest venture, an Internet aging an office building and several other prop- data services provider called Unihub Global, erties in Tianjin, the prime minister’s home- was founded in 2000 with $2 million in start-up town in northern China, through her property capital, according to Hong Kong and Beijing company, Taihong. She was in her 20s and had corporate filings. Financing came from a tight- studied at the Nanjing University of Science knit group of relatives and his mother’s former and Technology. colleagues from government and the diamond Around 2002, Ms. Duan went into business trade, as well as an associate of Cheng Yu-tung, with several relatives of Wen Jiabao, transform- patriarch of Hong Kong’s second-wealthiest ing her property company into an investment family. The firm’s earliest customers were state- vehicle of the same name. The company helped owned brokerage houses and Ping An, in which make Ms. Duan very wealthy. the Wen family has held a large financial stake. It is not known whether Ms. Duan, now 43, He made an even bolder move in 2005, by is related to the prime minister. In a series of pushing into private equity when he formed interviews, she first said she did not know any New Horizon Capital with a group of Chinese- members of the Wen family, but later described born classmates from Northwestern. The firm herself as a friend of the family and particularly quickly raised $100 million from investors, in- close to Zhang Beili, the prime minister’s wife. cluding SBI Holdings, a division of the Japanese As happened to a handful of other Chinese en- group SoftBank, and Temasek, the Singapore trepreneurs, Ms. Duan’s fortunes soared as she government investment fund. teamed up with the relatives and their network Under Mr. Wen, New Horizon established it- of friends and colleagues, though she described self as a leading private equity firm, investing in her relationship with them involving the shares biotech, solar, wind and construction equipment in Ping An as existing on paper only and having makers. Since it began operations, the firm has no financial component. returned about $430 million to investors, a four- Ms. Duan and other wealthy businesspeo- fold profit, according to SBI Holdings. ple — among them, six billionaires from across “Their first fund was dynamite,” said Kath- China — have been instrumental in getting leen Ng, editor of Asia Private Equity Review, multimillion-dollar ventures off the ground and, an industry publication in Hong Kong. “And that at crucial times, helping members of the Wen allowed them to raise a lot more money.” family set up investment vehicles to profit from Today, New Horizon has more than $2.5 bil- them, according to investment bankers who lion under management. have worked with all parties. Some of Winston Wen’s deal-making, Established in Tianjin, Taihong had spec- though, has attracted unwanted attention for tacular returns. In 2002, the company paid the prime minister. about $65 million to acquire a 3 percent stake in In 2010, when New Horizon acquired a 9 Ping An before its initial public offering, accord- percent stake in a company called Sihuan Phar- ing to corporate records and Ms. Duan’s gradu- maceuticals just two months before its public ate school thesis. Five years later, those shares offering, the Hong Kong Stock Exchange said were worth $3.7 billion the late-stage investment violated its rules and The company’s Hong Kong affiliate, Great forced the firm to return the stake. Still, New Ocean, also run by Ms. Duan, later formed a joint venture with the Beijing government and Mr. Cheng, 87, could not be reached for acquired a huge tract of land adjacent to Capi- comment. Calls to New World Development tal International Airport. Today, the site is home were not returned. to a sprawling cargo and logistics center. Last year, Great Ocean sold its 53 percent stake in Fallout for Premier the project to a Singapore company for nearly In the winter of 2007, just before he began $400 million. his second term as prime minister, Wen Jiabao That deal and several other investments, in called for new measures to fight corruption, luxury hotels, Beijing villa developments and particularly among high-ranking officials. the Hong Kong-listed BBMG, one of China’s “Leaders at all levels of government should largest building materials companies, have take the lead in the antigraft drive,” he told a been instrumental to Ms. Duan’s accumulation gathering of high-level party members in Bei- of riches, according to The Times’s review of jing. “They should strictly ensure that their corporate records. family members, friends and close subordinates The review also showed that over the past do not abuse government influence.” decade there have been nearly three dozen The speech was consistent with the prime individual shareholders of Taihong, many of minister’s earlier drive to toughen disclosure whom are either relatives of Wen Jiabao or for- rules for public servants, and to require senior mer colleagues of his wife. officials to reveal their family assets. The other wealthy entrepreneurs who Whether Mr. Wen has made such disclo- have worked with the prime minister’s rela- sures for his own family is unclear, since the tives declined to comment for this article. Ms. Communist Party does not release such infor- Duan strongly denied having financial ties to mation. Even so, many of the holdings found by the prime minister or his relatives and said she The Times would not need to be disclosed under was only trying to avoid publicity by listing the rules since they are not held in the name of others as owning Ping An shares. “The money the prime minister’s immediate family — his I invested in Ping An was completely my own,” wife, son and daughter. said Ms. Duan, who has served as a member of Eighty percent of the $2.7 billion in assets the Ping An board of supervisors. “Everything identified in The Times’s investigation and I did was legal.” verified by the outside auditors were held by, Another wealthy partner of the Wen rela- among others, the prime minister’s mother, tives has been Cheng Yu-tung, who controls the his younger brother, two brothers-in-law, a Hong Kong conglomerate New World Devel- sister-in-law, daughter-in-law and the parents opment and is one of the richest men in Asia, of his son’s wife, none of whom is subject to worth about $15 billion, according to Forbes. party disclosure rules. The total value of the In the 1990s, New World was seeking a relatives’ stake in Ping An is based on calcu- foothold in mainland China for a sister compa- lations by The Times that were confirmed by ny that specializes in high-end retail jewelry. the auditors. The total includes shares held by The retail chain, Chow Tai Fook, opened its the relatives that were sold between 2004 and first store in China in 1998. 2006, and the value of the remaining shares in Mr. Cheng and his associates invested in late 2007, the last time the holdings were pub- a diamond venture backed by the relatives of licly disclosed. Mr. Wen and co-invested with them in an ar- Legal experts said that determining the ray of corporate entities, including Sino-Life, precise value of holdings in China could be dif- National Trust and Ping An, according to re- ficult because there might be undisclosed side cords and interviews with some of those in- agreements about the true beneficiaries. volved. Those investments by Mr. Cheng are “Complex corporate structures are not nec- now worth at least $5 billion, according to the essarily insidious,” said Curtis J. Milhaupt, a corporate filings. Chow Tai Fook, the jewelry Columbia University Law School professor who chain, has also flourished. Today, China ac- has studied China’s corporate group structures. counts for 60 percent of the chain’s $4.2 billion “But in a system like China’s, where corporate in annual revenue. ownership and political power are closely in- tertwined, shell companies magnify questions backstage political force. But documents show- about who owns what and where the money ing that his relatives amassed a fortune during came from.” his tenure could diminish his standing, the ana- Among the investors in the Wen family ven- lysts said. tures are longtime business associates, former “This will affect whatever residual power colleagues and college classmates, including Wen has,” said Minxin Pei, an expert on Chi- Yu Jianming, who attended Northwestern with nese leadership and a professor of government Winston Wen, and Zhang Yuhong, a longtime at Claremont McKenna College in California. colleague of Wen Jiahong, the prime minister’s The prime minister’s supporters say he younger brother. The associates did not return has not personally benefited from his extended telephone calls seeking comment. family’s business dealings, and may not even be Revelations about the Wen family’s wealth knowledgeable about the extent of them. could weaken him politically. Last March, the prime minister hinted that Next month, at the 18th Party Congress in he was at least aware of the persistent rumors Beijing, the Communist Party is expected to an- about his relatives. During a nationally tele- nounce a new generation of leaders. But the se- vised news conference in Beijing, he insisted lection process has already been marred by one that he had “never pursued personal gain” in of the worst political scandals in decades, the public office. downfall of Bo Xilai, the Chongqing party boss, “I have the courage to face the people and who was vying for a top position. to face history,” he said in an emotional session. In Beijing, Wen Jiabao is expected to step “There are people who will appreciate what I down as prime minister in March at the end of have done, but there are also people who will his second term. Political analysts say that even criticize me. Ultimately, history will have the fi- after leaving office he could remain a strong nal say.” n