CEO at Arrested on Rape Allegations in U.S.

The CEO and founder of the Chinese retailer, Richard Liu was arrested last week in Minneapolis following a rape allegation, according to a police report released to the public on Tuesday.

Liu, who in the reported was identified as Liu Qiangdong, his Chinese name, was released on Saturday and not charged. He then left the country and returned to China.

An attorney based in Minnesota, Earl Gray, who represents Liu said that the businessman denied wrongdoing and he did not think his client would be charged.

Attorney Joseph Friedberg said on Tuesday said that there will not be any charges in the case as there does not exist any credible complaint.

A spokesperson for the Minneapolis Police Department said that if any charges were to be filed against Mr. Liu they would take place after the completion of an investigation that would not take place prior to Friday.

The report released by police said an alleged offense of “criminal sexual contact – rape,” had taken place but no domestic violence had been involved. No further details were in the report, but a police spokesperson said that the alleged attack had reportedly taken place at 1:00 a.m. Friday and later that same evening police took Liu into custody.

Shares of were down by up to 7% Tuesday hitting a low of 18 months, reflecting uncertainty of investors. Shares in the second largest Chinese e-commerce company were down 6% at the close on Tuesday and traded steady during afterhours.

Rules at require that Liu, who has 80% of the voting rights of the company, be present at board meetings when the board is to make decisions, though it was unclear if he must be physically present or could take part via teleconference.

Investors in included Walmart, Google and Tencent Holdings. Its biggest rival in China is Alibaba Group.

Liu lost a battle in an Australian court in July to keep his name from a trial on sexual assault. Liu was not charged with any wrongdoing in the case.

The cases involves a person who was a guest attending a party that Liu hosted at his Sydney home in 2015 who accused another person attending the same party of sexually assaulting her while she was at a Sydney hotel. The case ended with the defendant being found guilty.

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