You know the deal by now…
I’ve been addicted to finding stories about the dirty money on Wall Street, and man do I have an interesting story for you today.
It involves Jiang Fan, who many believed would be the successor to Zhang Yong, the current CEO of Alibaba (BABA).
However, those plans went awry, after his personal life took a turn for the worst…
When problems came up with his alleged lover, Zhang Dayi, a key influencer.
Jiang has been demoted… and it seemed like there may have been some shady dealings here.
Alibaba Group has emerged as its own titan. Even creating its own holiday Singles Day. Which customers celebrate by hooking themselves up with a little retail therapy.
But no one could have foreseen one of Alibaba’s shining star’s career taking such a sudden and abrupt left.
However, having your dirty laundry aired in public giving the company’s reputation a black eye can do it…
And it all has to do with lady drama.
The man behind all the talk is 34-year-old Jiang Fan. The senior vice president of the company’s main eCommerce Tmall and Taobao…
Alibaba’s youngest partner with the company AND was a major runner in the line of succession for the company’s CEO position.
Or at least he was……
Jiang’s behavior caused him to be demoted. Resulting in his senior ranking from his VP title removed. He went from once sitting amongst the other 38 partners of the company ─ to being removed from the table completely.
And having his bonus nixed as part of his punishment.
So How Did Jiang’s Succession Burst Into Flames?
Jiang’s fall from grace has everything to do with lady drama. Drama that caused a PR nightmare, tainting Alibaba’s public image.
A lady, discovered to be Jiang Fan’s wife, took to Weibo (basically like Twitter) to tell influencer Zhang Dayi to back up off her man. Strongly saying that if the influencer did not stop teasing her husband, she was gonna get it.
When a post like this hits the net, it spreads like wildfire!
Making everyone wonder if the Alibaba executive was stepping out with the internet celebrity….
And if she was getting sweet deals from Jiang.
The influencer is Zhang Dayi, who has over 5 million followers.
In 2016 she made $46 million, out-earning U.S. celebrity Kim Kardashian.
Zhang Dayi runs her fashion stores off Alibaba’s Taobao platform…. Which Jiang just so happened to be the head of.
In 2017, she accredited Taobao as having a hand in her success, talking up the platform, easy access, and… good management.
Supposed side piece, Zhang Dayi is also the chief of marketing and key shareholder Ruhnn Holdings. A company that Alibaba holds a stake in. A link that caused some to wonder if Jiang had any influence over.
Since the drama has exploded Jiang has expressed regret to the company and requested it take a good look at itself.
Alibaba has since run an internal probe due to the nature of this so-called relationship between Jiang and Zhang Dayi.
The truth revealed Jiang being innocent of any speculation involving Alibaba’s investing in Ruhnn. In fact, he had zero part in the decision.
He also was revealed to have no favoritism involving Zhang Dayi stores on Alibaba’s platforms.
This Wasn’t Alibaba’s First Rodeo With A Scandal
Putting alleged salacious affairs with influencers aside, this isn’t Alibaba’s first tango with scandal.
Heck, it’s not even the company’s second!
Back in good ole 2011, the company was rocked by a fraud scandal.
Both the CEO and the COO resigned. Taking “responsibility for the systemic breakdown in our company’s culture of integrity.”
The reasoning behind this move?
Around 100 salespeople with the company were caught letting fake entries slip through normal verification measures. A shady practice that resulted in over 2,300 fake accounts.
The company shelled out $1.7 million in fraud reimbursements due to the scandal. But this amount would look like chump change next to the following scandal.
In 2019 Alibaba settled up with the U.S. over a lawsuit.
The company paid a huge $250 million sum for hiding its regulatory warning.
A warning showing its lack of ability to stop counterfeiting before its multi-billion-dollar IPO in 2014. And since its IPO many lux brands have been out for Alibaba’s blood. A thirst that resulted in 2 suits being filed against the company.
The company also handily left out that it was the subject of some administrative law enforcement proceedings. Proceeding that could affect the company’s income, revenue, and share price.
The company also did not reveal that China’s State Administration of Industry and Commerce chided it for its many law and regulation breaches.
Of course, there are plenty of dirty money stories… and you’re going to want to hear the next one I’ve got lined up… cause it’s a good one.