The bottom line "God recommends stocks" scam: the new third board company deceived stockholders with a blindfold, involving 2.7 billion
As a NEEQ-listed company, Dalian Huaxun Investment Co., Ltd. (hereinafter referred to as "Dalian Huaxun Company") was suspected of fraud and false advertising and was "one pot end" by the Shenzhen police: 147 people were taken criminal coercive measures, including Chairman Zhou Twelve company executives including a rich man were arrested by the Longgang District Procuratorate.
On February 28, The Paper (www.thepaper.cn) learned from the Longgang Branch of the Shenzhen Municipal Public Security Bureau that Dalian ECCOM used false propaganda, concealing the truth, and promising returns to induce investors to buy "recommended stock packages." Defrauding high service fees.
According to preliminary statistics, the victims of this case are all over the country, and the amount involved is as high as 2.7 billion.
Currently, the police are looking for victims across the country and soliciting clues to the case.
According to Longgang police, Dalian ECCOM claims that there are 85 professional researchers, 26 national top analysts, and more than 80% of the company’s employees have senior technical titles. However, police investigations found that most of the company’s nearly 500 employees Employees do not have the qualifications of securities investment consulting practice, and there are not a few employees who directly connect with customers with only junior high school education. The company spends a lot of manpower and material resources on promotion and inducing customers to purchase services.
Ironically, in the company's internal communication group, some employees said, "You guys first discuss how to cheat customers' money"; some salespersons once flaunted their friends and said, "Our company is just cheating fool customers' money. It means those who have no culture and common sense will buy these products and services."
The Paper's inquiry found that on the online platform, a large number of netizens complained about Dalian ECCOM, calling it a "scam company."
According to the police, from 2017 to 2020, the company was punished by the securities regulatory bureaus in many places across the country due to the lack of securities business qualifications or illegal recommendation of stocks.
Being deceived and dismissed
The case first attracted the attention of the Shenzhen Longgang police. It was because a stock investor reported that he had been deceived, but then asked to withdraw the case, which was quite strange.
According to the Longgang police, in March 2020, a Longgang investor, Ms. Wang (pseudonym), saw an advertisement on the official account of "Dalian Huaxun Investment" while browsing the web, and the other party claimed to be able to give away three gold shares for free.
After scanning the QR code to follow, Ms. Wang was drawn into a WeChat group for recommending stocks.
In this WeChat group, three "golden stocks" are recommended every day and the live video link of the company's "recommended stock teachers" is sent.
In order to verify the company's recommended stock level, Ms. Wang wrote down the codes of these "golden stocks" and found that most of the stocks had indeed risen.
The salesperson in the group also promised that as long as the service fee is paid, the APP developed by the company will help her choose stocks using big data, and she can earn 1-3 times the profit in one month.
Ms. Wang was moved, so she paid 28,000 yuan "entrance fee" and purchased the company's stock trading software.
As soon as she paid the money, Ms. Wang was kicked out of the group on the grounds that the company would "provide one-to-one service."
In accordance with the customer service guidelines, Ms. Wang downloaded the "EC Stocks" APP to operate.
In the next few weeks, Ms. Wang felt that something was getting worse. Not only did most of the stocks recommended by APP not rise, but they lost money as soon as they were bought, and they were deeply locked up.
Ms. Wang contacted customer service many times, but the other party either didn't reply or said he was busy.
Ms. Wang felt cheated, so she called the police.
After learning that Ms. Wang called the police, Dalian ECCOM sent a representative to negotiate with her, refunded the service fee paid, and asked Ms. Wang to delete APP usage records and chat records with salespersons, and also instigated Ms. Wang to withdraw the case from the public security agency.
Longgang police stated that this abnormal behavior has attracted the police's attention.
Subsequently, the Longgang police set up a special investigation team and found that in addition to Ms. Wang, there were many such reports, all pointing to the Dalian Huaxun Company.
In addition, there are many complaints about the company on the Internet, and the complainant's experience is similar to that of Ms. Wang.
"It's just to lie to fool customers' money"
According to the results of Tianyan Check, Dalian ECCOM was established on November 16, 2000, with a registered capital of 46,058,800 yuan. The company address is located in Dalian. Its business scope includes securities investment consulting business.
Dalian ECCOM’s major shareholder is Li Ni, holding 45% of the shares, and its legal representative and chairman of the board are Zhou Chuifu, holding 25% of the shares.
The company has a branch in Shenzhen.
The paper found that Dalian ECCOM operates multiple WeChat public accounts and apps, and the main content of its tweets is "Recommended Bull Stocks". For example, a tweet on January 3, 2021 was titled "2021 Pound news!
The New Year's Eve market is coming soon, this section is expected to appear 10 times bull stocks!
".
On the online platform, a large number of netizens called the company a "liar". For example, one netizen left a message saying, "After paying tens of thousands of tuition fees, follow them to buy stocks, but the tuition fees are not paid back and the stocks are still losing."
After more than 9 months of investigation, the Longgang police have initially grasped the operation mode of Dalian ECCOM.
The company began operations in an office building in Futian District in 2015, and was listed on the New Third Board in October of the same year. It has an operation management center, a marketing planning center, a marketing center, a financial technology center, and a risk control compliance center. Almost all income comes from securities investment consulting service fees.
The police found that the company had placed a large number of advertisements on the Internet, attracting investors' attention with the gimmick of "getting three gold shares for free".
After obtaining the data, the salesperson will take the initiative to contact the stockholders and pull them into the "stock exchange group". The group will continue to show the company's "soft power" and send daily screenshots of the profitability of the PS, transfer bills and other dazzling performance.
Most of the members of the group are “trusted” by other salesmen, boasting that the company is strong and the recommended stock returns are good in the name of customers, thus repeatedly “brainwashing” the investors in the group until they purchase services.
According to the company’s employees, the company has a complete set of language skills to teach every salesperson during training, including how to respond to various queries raised by customers, and emphasizes that it must not sell to “sensitive” professions such as lawyers, reporters, and police because “they The legal consciousness is relatively strong, and it is more difficult to deal with."
In order to encourage customers to pay fees, salespersons will also promise revenue through the phone or WeChat voice, so that they can deny it and avoid being found by the regulatory authorities as direct evidence.
After the victim makes an order after paying the fee, the salesperson will hand over the information to the company's risk control department for review, and "de-mark" the non-compliant content in the company's system, that is, delete the chat history of false propaganda and guaranteed profit.
Once the customer pays the fee, the company kicks it out of the stock exchange group on the grounds of arranging one-to-one services.
Avoid the loss of the recommended stocks, causing them to complain in the group and affecting other customers who have not paid the fee.
Once the customer pays and installs the ECCOM Stock App, the company begins to "cold handle" it, and the customer service no longer actively provides stock recommendation services to victims.
After the victims bought stocks based on APP's recommended stocks, most of them lost money, but contacted customer service without answering one question and three questions. The "one-to-one service" promised before did not exist.
The police revealed that customers were unable to receive the corresponding services after purchasing the services, which triggered a large number of reports and complaints. Many salespersons were also aware of the company's fraud.
The salesman’s chat records show that on one side is the sad message of the customer, “The stocks in your hand have not been solved yet, and the situation will worsen with you for a week.” “The market situation is so good, and there are professionals who have guided the stocks to buy and lose, which is even more important. Depressed".
On the other hand, employees said in an internal communication group called "Billionaires" in the company, "You guys first discuss how to cheat customers."
There are also salesmen who once showed off to friends, "Our company cheats foolish customers' money. Only those who have no culture and common sense will buy these products and services." "Usually it is 140,000 to 30,000, and there are many more. There are customers. Handed over 300,000 yuan".
"God recommended stocks" blindfold
The Paper has noticed that many netizens complained that the return on investing in the "God-recommended stocks" recommended by Dalian ECCOM was not bad at the beginning, but then they made successive losses.
The Longgang police also found that, like Ms. Wang, many victims paid membership fees after observing for a period of time. What is puzzling is that the recommended stocks seem to be pretty good before the payment. "Not working" anymore.
Does the "God-recommended stock" that has caused many investors to fall into the scam really has a "magic effect"?
After investigation, the police found that the company would package the so-called "recommended stock teachers", record stock analysis videos for them, broadcast live broadcasts, and package them as "gold experts."
The salesman will tell the victim that the "teacher" recommends three free stocks every morning.
In fact, these three stocks have been relatively aggressive and volatile recently, with a high probability of rising and falling, and they are of the nature of gambling.
Once there is a rise in the three stocks, the salespersons will immediately send screenshots of the stocks that have successfully risen to customers, and never mention the falling stocks, repeatedly creating the illusion of accurate forecasts.
Among these rising stocks, there may even be stocks with a daily limit. They are actually selected during the call auction stage before trading every day. The market has not yet opened at this stage, but the opening price of the stock has come out on the same day, compared to yesterday. Ups and downs.
This kind of stock is the legendary "high opening stock". It will directly limit or open higher as soon as the market opens, but you can only look at it, because it is not available at that time, and it is pushed to customers a few minutes before the market opens. It can make customers think that the company is very powerful, and the recommended stocks can reach the daily limit.
If the customer doubts that some of the recommended stocks have fallen, the salesman also has a set of rhetoric, such as "free gold and sand, this is because the company did not buy the company's recommendation software", and persuaded the victim to pay the service fee to buy the recommended stock software.
The police investigation also found that, in addition to the newly recruited investors in the recommended stock group, most of the group friends are members of the company's salesperson, who are responsible for sending PS screenshots or transfer statements in the group, boasting that the company is strong. The recommended stock returns are good.
Develop a stock recommendation app to avoid risks
The police found that before April 2020, Dalian ECCOM basically provided consultation for manual docking. The inability to provide the promised service resulted in a large number of customer complaints.
After that, the company developed and launched the "ECCOM Stocks" APP, which was divided into VIP version annual fee of 28,000 yuan, institutional version annual fee of 76800 yuan, and institutional VIP version annual fee of 128,000 yuan. In the APP, stocks will be recommended for customers to choose. The higher the grade, the more high-quality stocks recommended.
According to different sales performance, salesmen get 3%-10% performance commission from it.
According to the police investigation, the chairman of the company, Zhou Moufu, after seeing a case in which a domestic counterpart with “manually recommended stocks” was sentenced, he urgently developed a “China News Stocks” APP to cover up fraud. The algorithm was fabricated indiscriminately and fundamentally. There is no function to optimize stocks.
At the same time, the sentenced cases of peers were also used as teaching materials by the company, and the staff was specially organized to study repeatedly. Zhou Moufu instructed the staff to "clean up the trash" and clear all the chat records and other content that violated the rules.
"In fact, there is no technical content. It is just to collect some information together. We have not understood these indicators." An employee responsible for APP development explained, "The stocks pushed on the APP are actually manually screened. APP It's just a carrier, claiming that big data algorithms are just to be more high-end, and I wouldn't buy it myself anyway."
After using the "ECCOM Stocks" APP, a large number of customers also suffered losses and asked for refunds.
At this time, the customer service department is responsible for pacifying the victim. If it is impossible to pacify the victim, or the victim complains to the relevant department, the risk control department will intervene and ask the victim to sign a settlement agreement by partially or fully refunding the service fee, and request Delete ECCOM APP and all chat records to avoid attracting the attention of regulatory authorities.
In order to prevent the attention of the police and the China Securities Regulatory Commission, the company has purchased professional online public opinion monitoring services and has a special risk control public relations department.
When it is monitored that a customer has posted a negative comment on the company online, the risk control department will contact the customer as soon as possible to discuss the refund. The prerequisite for the refund is to delete all chat records, delete negative online comments, and withdraw from the Securities Regulatory Commission. Meeting complaints, canceling the alarm, etc.
In the "Essence of Speech" captured by the Dalian ECCOM company, the company declared, "We ECCOM has 85 professional researchers, 26 national top analysts, and more than 80% of the company's employees have senior technical titles. Our Experts and teachers have experienced the ups and downs of the stock market for 20 years, big and small bear markets and bull markets. Even if we can't help you make long-term stable money, no one can help you make money!"
However, the police investigation found that most of the company's nearly 500 employees do not have the qualifications of securities investment consulting practice, and there are not a few employees who directly communicate with customers with only junior high school education.
The company spends a lot of manpower and material resources on promotion and inducing customers to purchase services.
Once customers pay, the customer service department with less than 50 people is responsible for "serving" more than 20,000 customers, of which only 4 have the qualifications of securities investment consultants.
From 2017 to 2020, the company was administratively punished by securities regulatory bureaus in many places across the country due to salespersons who did not have the qualifications for securities practice or recommended stocks in violation of regulations.
Recently, under the overall command of the Criminal Police Detachment of the Shenzhen Municipal Public Security Bureau, the Longgang Police and Futian Police jointly raided an office building in Futian District and launched a network closure operation against the suspected fraud and false advertising case of Dalian Huaxun Investment Co., Ltd.
According to preliminary police statistics, the victims of the case are all over the country, and the amount involved is as high as 2.7 billion.
In order to further investigate the criminal facts of Zhou's criminal group suspected of fraud and false advertising, Shenzhen Longgang Police are searching for victims across the country and collecting clues to the case.
(This article is from The Paper. For more original information, please download the "The Paper" APP)