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A manager with the famous online game operator Shanda has been sentenced to five years in prison for embezzling in-game assets.

Wang Yihui, 30, and his two accomplices, raked in more than 2 million yuan (US$258,534) from virtual properties created through the company's game system by trading them, Shanghai Pudong New Area District People's Court heard.

The racket was uncovered last September, when Shanda found a large amount of "invented" virtual properties. They reported it to police.

One of racketeers even purchased an apartment with his illegal earnings. Most of the money has been recovered, the court heard.

Wang said in hearings that he never embezzled money, arguing that China's criminal law does not cover virtual property embezzlement.

But the court ruled against it, claiming that virtual properties were worthy when players contributed time and money to earn them. Wang told the court that he would appeal to a higher court after hearing the verdict.

One accomplice received three years imprisonment with a four-year suspension. The other got two-and-a-half years with a three-year suspension.

In 2002, Wang joined Shanda Corporation, one of the biggest online gaming operators in the world, and was responsible for maintaining and updating its game programs.

In August 2004, Wang and his primary school mate Jin spoke on the Internet about how people were making money by trading online game properties.

After Jin registered accounts in the game Legend of MIR II, Wang invented assets by making changes in the system and then sold them to other players.

In February 2005, Tang, Wang's friend from his hometown in Zhejiang Province, joined them.

A player surnamed Xu who gave evidence in court said that he had spent 1,500 yuan, in real money, to purchase a magic ring, which is worth about 2,000 yuan according to the market price. But, it was confiscated in three hours by the company.

(China Daily March 27, 2007)