Shen Hao, former president of the 21st Century Media Co. Ltd., was sentenced to four years in prison on Thursday for blackmailing companies by threatening negative coverage.

Shen was convicted of extortion and forced transactions, among other crimes, the People's Court of Shanghai's Pudong New District said in a statement.

According to the verdict, Shen was fined 60,000 yuan ($9,266 dollars) and all his illegal gains will be confiscated. The media group was fined 9.485 million yuan.

The court determined the 21st Century Media and Shen Hao, from Aug 2009 to Sept 2014, coerced nine companies and organizations, including Sichuan Langjiu Group Co., LTD., into paying more than 7.28 million yuan to avoid negative coverage.

The company capitalized on the fear of negative publicity for companies poised for IPOs or amid asset restructuring. A network of media, advertisement and operation companies controlled by the 21st Century Media participated in the scheme, the court said. Shen designed the performance evaluation methods.

It also determined 21st Century Media and Shen Hao, together with their controlled companies, coerced 70 companies and organizations into signing advertisement contracts worth a total of 18.97 million yuan, by threat of negative coverage or hinting that no advertisement on their media platform could lead to failed IPOs.