The co-founder and CEO of the giant Chinese e-commerce site JD.com are suffering a blow from a rape allegation, manifested by his significant fall from the Forbes' China Rich List. Once in the 16th spot, Liu Qiangdong, or Richard Liu as he is also known, is now at the 30th spot.
According to the Forbes magazine, Liu's net worth declined by 34% following the scandalous allegations to $6.2 Billion. This decline adds to the injury of JD.com's shares falling by 25% at the end of August, the time when was arrested in Minnesota concerning the rape accusation. At the time, he was briefly detained in Minneapolis but was later released without charge. He was not also given bail requirement. While free in the meantime, he did not go scot-free from this event, however, because his reputation and naturally, net worth, suffered.
The Business Insider reported that the Hennepin County's police and attorney officers already received the reports from the police investigation. However, there is still no timeline as to when the decision to charge or not charge Liu will be made and announced. So far, his case remains in the open and he is not charged with any crime. However, if to be charged, he is facing a first-degree felony. If convicted, he can receive a maximum of 30 years sentence.
Liu has the full support of JD.com however. The company vehemently denied the allegations against Liu, claiming that he is the one suffering from false accusations and as a result, the company might take the necessary legal action against those falsely spreading the rumors.
One of Liu's lawyers, Jill Brisbois, also told the Chinese media last month that there is a high chance that prosecutors will not bring charges. After she commented, JD.com's value jumped 5%. This shows how vital Liu's credibility is to the company. The plummeting now of his net worth is a sign that his reputation has been massively tarnished, especially since he has always been noted as a workaholic and a family man, as reported by Reuters.
Before this scandal, Liu is reputed as being clean in how handles competition and business. JD.com's tough stance on counterfeits adds to this reputation. According to Reuters, Liu once claimed that he loves working hard and hates relaxing. Instead, he can be observed working 16-hour days.
