Shanghai police have detained a man suspected of fabricating online rumors that a female executive at State-owned oil giant Sinopec accepted sexual favors as a bribe from a US supplier, and that the supplier subsequently blackmailed her.
Fu Xuesheng, 47, president of Shanghai LabInfo Technologies Ltd, also faces an allegation of making up a rumor that a police chief accepted more than 2 billion yuan ($327 million) in bribes and murdered an entrepreneur.
Police said Fu made up the rumors to vent his anger at Sinopec and a company involved in the rumor involving the police chief.
Fu's arrest came amid a nationwide clampdown on online rumors.
Since last week, police in Beijing have closed a company suspected of fabricating and spreading fake information online, especially involving celebrities, and placed two of the company's executives, Qin Zhihui and Yang Xiuyu, in criminal detention.
On Sunday, prosecutors in Jiangsu province approved the arrest of Zhou Lubao on charges of extortion linked to spreading Internet-based rumors.
In Shanxi province, 23 people had been arrested by Aug 15 with 27 websites shut down during a crackdown on illegal online activity that has taken place since June 25, the police said. The individuals and websites are suspected of releasing false information online, using the Internet to blackmail others, or engaging in Internet-based fraud.
But unlike some others who spread false information online to seek economic gains, police said that Fu made up rumors for revenge.