China News Service, Shanghai, October 27 (Reporter Li Shuzheng) Shanghai No. 1 Intermediate People's Court (hereinafter referred to as Shanghai No. 1 Intermediate People's Court) publicly sentenced the defendant Beibatao Group Co., Ltd. (hereinafter referred to as Beibatao Group) and the defendant in accordance with the law on the 27th. Lin Qingfeng and other 8 persons manipulated the securities market case.
Shanghai No. 1 Intermediate People's Court sentenced Beibadao Group to a fine of 300 million yuan (RMB, the same below) for the crime of manipulating the stock market; Lin Qingfeng was sentenced to 8 years and 6 months imprisonment for the crime of manipulating the stock market and a fine of 10 million yuan; against Lin Yuting Seven defendants including Li Junmiao and Li Junmiao were sentenced to fixed-term imprisonment of 5 years and 6 months to 1 year and 7 months for the crime of manipulating the stock market, and fines ranging from 1 million yuan to 200,000 yuan.
The court stated that after trial, it was found that the defendant Lin Qingfeng was the actual controller of the Beibatao Group.
From the second half of 2016, Lin Qingfeng, in order to obtain a capital advantage and shareholding advantage in the securities market, instructed the defendants Lin Yuting, Li Junmiao, He Yinghua and others to contact the defendant Zhang Dinghai and other fund-raising intermediaries with a ratio of 1:3 to 1:10. The proportion of funds allocated to obtain huge amounts of funds and a large number of securities accounts.
Among them, Zhang Dinghai illegally provided funds of more than 1.098 billion yuan to Beibatao Group and 119 securities accounts of others.
Lin Qingfeng pooled the above-mentioned funds and securities accounts of others, together with some of Beibatao Group’s own funds and actual-controlled securities accounts, to arrange transactions between Beibatao Group and the group’s subsidiary Xiamen Six Lakes Yacht Club Co., Ltd. employee defendants Cai Yongdong and Huang Huikuang as the backbone of the transaction The team used hundreds of computers and unregistered wireless network cards and other equipment in Xiamen, Shanghai, Kunming and other places to continuously buy and sell stocks or buy and sell stocks between their own actual control accounts, which affects the stock trading price and trading volume.
From February 14th to March 30th, 2017, Beibadao Group used 333 securities accounts, and the number of outstanding shares of "Jiangyin Bank" reached more than 30% of the total actual outstanding shares of the securities during the same period, for 33 consecutive trading days The cumulative trading volume of "Jiangyin Bank" reached more than 30% of the total trading volume of the securities during the same period.
As of May 9th of the same year, the account group controlled by Beibatao Group made illegal profits of more than 301 million yuan.
The Shanghai No. 1 Intermediate People's Court believes that the defendant Beibadao Group and the defendant Lin Qingfeng and other directly responsible officers, together with other directly responsible personnel, worked with Zhang Dinghai, an intermediary officer, to consolidate the advantages of capital and shareholding for continuous trading and manipulate the securities market. The actions that affect the price and volume of securities transactions have constituted the crime of manipulating the securities market, and the circumstances are particularly serious.
Based on the facts, nature, circumstances, and degree of social harm of the entire case, the Shanghai No. 1 Intermediate People's Court made the above-mentioned judgment in accordance with the law.
As early as March 2018, the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) held a press conference and disclosed three typical cases of violations of laws and regulations.
One of the cases is the Beibatao Group, which manipulated Zhangjiagang Bank and Jiangyin Bank through capital allocation methods.
At that time, the China Securities Regulatory Commission stated that it planned to impose a maximum penalty of not one fine of five on the Beibatao Group, with a total fine of about 5.5 billion yuan.
The amount of fines is huge, making it the largest fine in the history of the China Securities Regulatory Commission.