The Securities Regulatory Commission notified the first batch of penalties for financial fraud cases applying the new "Securities Law"

　　Chinanews.com, July 23. According to the news on the website of the China Securities Regulatory Commission on the 23rd, the China Securities Regulatory Commission notified the penalties for the first batch of financial fraud cases applying the new "Securities Law", with a maximum fine of nearly 40 million yuan.

　　Financial fraud of listed companies is a “cancer” in the securities market, which severely undermines the foundation of market operation and infringes on the interests of investors. It has always been the focus of supervision and law enforcement by the CSRC.

In recent years, the China Securities Regulatory Commission has continued to increase its investigation and handling of vicious cases of financial fraud and market manipulation, resolutely implement the requirements of the new Securities Law, effectively increase the cost of violations of the capital market, and strengthen the deterrence of regulatory enforcement.

Recently, the first batch of vicious cases of applying the new Securities Law to punish financial fraud has entered the stage of prior notification or an administrative penalty decision, with a maximum fine of nearly 40 million yuan.

The China Securities Regulatory Commission notified the handling of three typical cases:

　　Yihua Life has continuously implemented major financial frauds for many years. The inflated profits from 2016 to 2019 accounted for 88.24%, 98.67%, 192.78% and 99.37% of the total profits disclosed in the current period (calculated by the absolute value of the total profits).

The case has entered the notification procedure, and it is currently the case with the highest amount of fines for illegal disclosure of listed companies.

The notice confirms that during the four years from 2016 to 2019, the company inflated profits by more than 2.7 billion yuan through fictitious sales, inflated sales, etc.; inflated bank funds through forged bank documents, no accounting or false accounting, etc.86 More than RMB 32 billion; failed to disclose more than RMB 32 billion of capital transactions with related parties in accordance with regulations.

The ICC intends to fine a total of 39.8 million yuan for the offenders in this case, 6 million yuan for Yihua Life, 9.3 million yuan for the actual controller and chairman of the board, and a lifetime market ban, and 2.5 million to the main responsible person. Fines ranging from 4.5 million yuan and a maximum of 10 years of ban on the securities market.

　　From 2018 to 2019, Guangdong Rongtai has inflated profits by more than RMB 55 million through fictitious sales collection and fictitious factoring business methods.

Related reports failed to disclose related party relationships and daily operating related party transactions as required.

Guangdong Rongtai's information disclosure contains false records and major omissions.

The CSRC has made an administrative penalty decision on Guangdong Rongtai and related personnel in accordance with the law. It has decided to fine a total of 14.5 million yuan on the offenders in this case, impose a fine of 3 million yuan on Guangdong Rongtai, a fine of 3.3 million yuan on the actual controller, and other responsible persons. Fines ranging from 200,000 to 1.6 million yuan were imposed.

　　In 2019, China Diving Inc. inflated operating income by more than 37.2 million yuan and inflated operating costs by more than 11.5 million yuan, resulting in an inflated operating profit of more than 25.7 million yuan, accounting for 62.08% of the current total profit.

At the same time, China Diving's 2019 annual report failed to disclose related party transactions as required, and the relevant announcements disclosed in 2020 contained misleading statements.

The case has entered the notification procedure. The ICC intends to impose a total fine of 15.4 million yuan on the offenders in this case, a fine of 3.5 million yuan on China Diving, and a fine of 2 million yuan on each of the two main responsible persons.

　　The three cases presented the following characteristics: long-term systematic financial fraud, involving a huge amount of money, a long duration, and the longest span of 4 years; the core decision-making and organizational implementation of the actual controller, subjective malignancy is obvious; the fraudulent methods are complex and concealed, and the form is constantly being renovated and used New or complex financial instruments and cross-border business achieve the purpose of fraud; financial fraud associated with failure to disclose material information in accordance with regulations and other violations of laws and regulations.

In some of the aforementioned cases, the proportion of fraud is high, the circumstances are serious, and the impact is extremely bad.

The Securities Regulatory Commission resolutely uses the new "Securities Law" sharp sword, uses heavy codes and punches to maintain market confidence and protect the legitimate rights and interests of investors. It upholds the following law enforcement concepts: First, for cases with sufficient evidence and clear facts of violations, serious At the end, if you hit to the end, you will "bump your muscles and bones" and never "tick it." All of these cases were fined more than ten million yuan, and the responsible person was more than one million yuan, so that the offenders "knowingly hurt" and dare not "tick it." Re-offending"; second, to grasp the "critical minority", to make precise strikes, to distinguish responsibilities, and to distinguish plots. The more obvious characteristics of this batch of cases are strict handling of the first crime, heavy penalties on the actual controller, and life-long market bans; third, Construct a three-dimensional accountability system, resolutely transfer suspected crimes, and never tolerate them, allowing offenders to bear due responsibilities in administrative penalties, criminal strikes, and civil compensation.

With the exception of the Guangdong Rongtai case where administrative penalty decisions have been made, all these cases have been notified that we will deal with these cases as soon as possible in strict accordance with the law.

　　In the next step, the China Securities Regulatory Commission will earnestly implement the "Opinions on Strictly Cracking Down on Securities Illegal Activities According to Law" issued by the Central Office and the State Council, fully implement the "zero tolerance" work policy, make full use of the duties granted by relevant laws, and severely investigate and deal with For vicious and illegal acts such as financial fraud, we will resolutely investigate the illegal responsibilities of relevant institutions and personnel, and comprehensively use a three-dimensional accountability system of administrative law enforcement, civil recovery, and criminal punishment to form a joint force to crack down on illegal securities activities in accordance with the law, and maintain the "three public" order of the market. Purify the market ecology and promote the steady and healthy development of the capital market.