Li Tuchun, founder and former chairman of bankrupt dairy company Hunan Taizinai Group, has been detained by authorities, the South China Morning Post reported. Li is reportedly being held on suspicion of embezzling government funds, although the dairy was a privately-owned company backed by Western investors including several Wall Street banks. Taizinai was once China’s leading producer of yogurt-based health drinks, but fell into provisional liquidation in April. While Hunan officials struggled with Li to stabilize the company in early 2009, outside events including earthquakes and the national tainted milk scandal served to further damage the company’s business condition, which was already weak due to overexpansion. Accountants reported that Taizinai falsely stated a net profit of US$35.9 million in 2007, when in fact the company lost US$4.4 million.