"Famous Mouth" recommends stocks and then sells them collectively to obtain short-term price differences; fund company employees use undisclosed information to buy and sell stocks
"Leek" was cut like this!
The Supreme People’s Procuratorate and China Securities Regulatory Commission: "Zero Tolerance" on Securities and Futures Crimes
In recent years, the financial environment for the development of the real economy has been continuously optimized. However, some illegal and criminal activities such as financial fraud, insider trading, and market manipulation have severely disrupted the order of the capital market, harmed the interests of investors, and endangered the reform and development of the capital market.
The Supreme People’s Procuratorate and the China Securities Regulatory Commission stated that the securities regulatory authorities, procuratorial organs, and other relevant departments have united their efforts to "zero tolerance" for securities and futures crimes.
"Famous Mouth" turned "Black Mouth", manipulated trading 46 times
The Supreme People’s Procuratorate and the Securities Regulatory Commission have recently jointly issued typical cases of securities violations and crimes.
In these cases, the first case of "black mouth" recommending stocks for profit in the stock market was named.
Liao Mouqiang is the guest host of a well-known program and a weekly program of Shanghai Radio and Television CBN Channel.
Liao Mouqiang used the influence of his well-known securities show host to publicly evaluate and recommend stocks on his Weibo and blog, and control the use of 13 securities accounts including his own account to buy relevant stocks before recommendation. Sell the stocks on the day or the next day after the stock recommendation to obtain short-term spreads.
During the period involved, Liao Mouqiang performed the above-mentioned manipulations 46 times, involving 39 stocks, with a total of 43.1 million yuan in illegal gains.
In April 2018, the China Securities Regulatory Commission made an administrative penalty decision, determined that the above-mentioned behavior of Liao Mouqiang violated the provisions of Article 77, paragraph 1, item 4 of the 2005 Securities Law, constituted a situation of manipulation of the securities market, and decided to confiscate Liao Mouqiang’s illegal income 4310 More than 10,000 yuan and a fine of more than 86.2 million yuan.
The reporter learned that this case is the first case that a non-special identity subject has been punished by the China Securities Regulatory Commission to engage in “snatching hats” to manipulate the market.
The essence of "grabbing" manipulation is that the parties have market influence, and they use their influence to recommend, evaluate, and predict stocks, and then conduct reverse transactions to make profits.
Build a "mouse warehouse", arguing that "transaction coincidence"
In a typical case, it involves a transaction using undisclosed information.
Hu Moufu used undisclosed information to buy and sell stocks for more than 2 billion yuan, with a profit of 41,860,700 yuan.
Hu has worked in the central trading room of a fund management company since 2007. He has served as a trader and deputy director. He is responsible for distributing and executing the instructions of the fund manager, placing orders and trading stocks, and has the authority to know the company’s stock trading information. .
From April 2010 to May 2015, after Hu Moufu placed an order to trade stocks in accordance with the instructions of the fund manager, he used his father’s and father-in-law’s securities accounts or instructed his father to use his own securities accounts. For stocks, the total purchase transaction amount was more than 1.11 billion yuan, the total sold amount was more than 1.21 billion yuan, and the total illegal profit was 41.867 million yuan.
After being transferred to the procuratorate for prosecution, Hu argued that he lacked an understanding of the illegality of using undisclosed information to trade stocks, and that part of the purchase of stocks that were the same as the fund manager's order was a "trading coincidence."
On December 29, 2017, the Beijing Second Intermediate People's Court made a first-instance judgment and sentenced the defendant Hu Moufu to 7 years in prison for the crime of trading in undisclosed information, and a fine of 90 million yuan, and the illegal gains were recovered.
Securities and futures criminals are mostly "experts"
Zheng Xinjian, Director of the Fourth Prosecutors Office of the Supreme People’s Procuratorate, said that with the continuous development of the capital market, the current securities and futures crimes involved products have developed from stocks and futures to private equity bonds and options. The field of crime has changed from the main board, the ChiNext board, and the small and medium board to the new third board. The market has spread, and there have also been cross-border and cross-market crime cases. The use of new concepts and new technologies to commit crimes is also increasing.
"Most of the personnel engaged in securities and futures crimes are securities and futures practitioners or'experts' in this area, as well as specialized intermediary agencies such as accounting firms." Zheng Xinjian said, "These personnel have professional knowledge and divide labor between them. Sophisticated and sophisticated equipment, with a high degree of professionalism and organization."
In addition, in cases such as insider trading and transactions using undisclosed information, the information transmitter and receiver usually form an offensive and defensive alliance, and "zero confession" often occurs.
In typical cases, the amount of money involved in market manipulation, transactions using undisclosed information, and insider trading are particularly huge, and the illegal profits are all over 10 million yuan.
Statistics show that from January to September this year, procuratorial organs nationwide approved the arrest of 102 people for various types of securities and futures crimes and prosecution of 98 people, a year-on-year increase of 15% and 27% respectively.
Teng Biyan, director of the Office of the Administrative Punishment Committee of the China Securities Regulatory Commission, said that since the 19th National Congress of the Communist Party of China, the securities regulatory system has made 810 administrative punishment decisions on related illegal cases, 82 decisions on market bans, and a fine of 19.304 billion yuan.
"Administrative punishment, as a link in the entire chain of accountability and punishment, is not and should never be the end of the accountability of offenders." Teng Biyan said that it is necessary to increase the linkage with the public, procuratorate and law agencies, and comprehensively use administrative supervision measures and administrative measures. Penalties, civil compensation, criminal accountability and other methods have established a "three-dimensional accountability" system. Only in this way can the "zero tolerance" requirement be truly implemented.
Reporter: Lu Yue