Yili dairy bosses reported in US$3.6m scam

State media reported that arrested five top executives from Inner Mongolia Yili Industrial Group, the embattled dairy, had transferred US$3.6m without board authorization to two other companies. Yili is China's top milk processor by sales and number three by stock market value. The list of detainees includes Yili Chairman Zheng Junhuai, a 20-year company veteran and former government official, his CFO and the company's securities representative. The funds transfers were made to Hohhot Huashi, Yili's fifth largest shareholder, and Trading Co and Qiyuan Co, according to Shanghai Securities News, and used to fund daily operations.