2011-01-24 19:20

CHONGQING - An alleged mafia-style ringleader, also a top shareholder in a Hilton Hotel, went on trial Monday in Southwest China's Chongqing municipality for gang-related activities.

Peng Zhimin, his 26-member gang and five officials went on trial at the Chongqing Municipal No 1 Intermediate People's Court.

Peng, 48, owner of the Qinglong Property Development Company, has been charged with six crimes - managing a mafia-style organization, organizing prostitution, assault, illegal logging, usury and bribery - prosecutors said.

Peng, a major shareholder in the Chongqing Hilton, ran the Diamond Dynasty Club located in the basement of the hotel, where prostitution, drug abuse, gambling and gang activities occurred.

Lu Yonghe, former director of Chongqing's Nan'an district agricultural, forestry and water resources bureau, and He Defu, the bureau's former vice director, were charged with accepting bribes of 1.95 million yuan ($296,300) to protect the gang.

Peng pled guilty bribery but denied the other charges.

The trial will last five days.

Chongqing authorities began a crackdown on mafia-style crime in the mega-city of 30 million people in 2008.