At the subsequent trial in Anguo in 2003, he was found guilty and sentenced to three years behind bars with a four-year reprieve. He served two before being released on bail pending another appeal.
"I knew the ruling was wrong. I didn't violate the tax law," said Jiao, who was finally cleared of any wrongdoing by a county court in Baoding.
He said he initially asked for just 120,000 yuan in compensation but was rejected by Anguo court.
"I was furious," he said. "So, I calculated my losses over the years and applied for 69.8 million yuan (in August), which includes more than 12 million yuan for the effect on my health, and 1 million yuan for mental anguish."
According to the State Compensation Law, the daily rate for someone wrongly imprisoned is equal to the national average daily wage for the previous year.
Zhan Zhongle, a professor of administrative law at Peking University, said the revised law does cover mental anguish, but "lacks detailed standards".
Memorial service held for China's fighter jet production head