Liu was criticized within China for arranging a high-level position within the ministry for his brother, Liu Zhixiang. In January 2005 Liu Zhixiang was arrested for embezzlement, bribe-taking, and arranging the killing of a contractor intent on exposing him. Before being arrested, Liu Zhixiang was able to amass a fortune equivalent to US$50 million in cash, real estate comprising 374 properties, jewelry, and art. He was sentenced to death, but this sentence was suspended and reduced to sixteen years in jail, after which he was transferred to a hospital to serve his sentence there. While serving his sentence in hospital he reportedly continued to conduct rail business by phone.