Chinese IT media executive tagged for extortion

CHINESE PROSECUTORS in Beijing Xicheng have 'formally approved the arrest' of Liu Ren, VP of Oak Pacific Interactive, and two IT news website editors on charges of extortion.

According to Chinese media, Liu influenced DoNews.com editor Xu Xinshi and 17Tech.com editor You Yang in July 2008 to publish false and negative news about Qihoo.com at the two online news websites and Mop.com – all of which are at least partly owned by Oak Pacific.

When Qihoo.com complained, Liu reportedly suggested that it pay CNY230,000 (presently worth about $33,667, £22,616 or €26,727) into his personal bank account to have the false news articles taken down.

Qihoo.com made an initial payment of CNY50,000 on September 19, 2008, upon which Liu had several of the offending articles deleted. But he and the other two editors continued to post false news stories about the company, so Qihoon.com management went to the police.

A sting was apparently set up, at which Liu, Xu and You were arrested as they took receipt of a second blackmail payment from Qihoon.com on October 12, 2008.

On November 19, the police provided information to the Beijing Xicheng District People's Procuratorate requesting what we in the West might call indictments of Liu Ren, Xu Xinshi and You Yang for extortion.

Local media are reporting that Qihoon.com was not the first victim and that the "Liu Ren gang" has been blackmailing other Chinese technology and Internet companies for a long time through the websites he controlled.

Beijing police are said to be investigating further. µ

L'Inq
China Tech News