The Supreme People’s Procuratorate and the China Securities Regulatory Commission released typical cases of securities violations and crimes
The stock market "black mouth" recommends stocks for profit of more than 43.1 million yuan
□ Reporter Zhao Jie
□ Our reporter Zhou Bin
Cases of fraudulent issuance of stocks, bonds, manipulation of the securities market, cases of leaking inside information, cases of trading using undisclosed information... On November 6, the Supreme People’s Procuratorate and the China Securities Regulatory Commission jointly issued typical cases of securities violations, covering securities issuance And common crimes in the field of securities trading.
Fraudulent issuance of shares
[Basic case] Xin Mou Co., Ltd. was originally a company listed on the Growth Enterprise Market of the Shenzhen Stock Exchange.
The actual controller of the company Wen Mouyi and the financial director Liu Mousheng, in order to achieve the purpose of listing Xin's company, the staff of the organization unit used external borrowing, using their own funds, or forging bank documents, etc., to fictitiously collect and respond to the payment , Defrauding the approval of the China Securities Regulatory Commission for the issuance of shares, and the public offering of shares to raise funds of 257 million yuan.
After Xin's company went public, it continued to falsify financial data by using the aforementioned methods, whitewash the company's financial status, and disclosed to the public the false annual reports and semi-annual reports that conceal important facts.
[Procedure] The public security agency transferred the prosecution to the People's Procuratorate of Dandong City, Liaoning Province, for the crime of fraudulent stock issuance by Xin Company, Wen Yi and Liu Mosheng.
The procuratorial agency found that after Xin's public offering of shares, the three financial reports disclosed to the public still contained false financial information and were suspected of illegal disclosure of important information. The case was returned to the public security agency for additional investigation. Suspected of fraudulent stock issuance crimes, illegal disclosure, and non-disclosure of important information crimes were transferred to prosecution.
In April 2019, the court made a first-instance judgment and sentenced the defendant Xinmou Company to a fine of 8.32 million yuan for the crime of fraudulent issuance of stocks; for the crime of fraudulent stock issuance, illegal disclosure, and non-disclosure of important information, the defendants Wen Yi and Liu were fined. Victims of multiple crimes were punished together and sentenced to three and two years imprisonment, and a fine.
Neither the defendant unit nor the defendant appealed, and the judgment has taken effect.
[Typical significance] Financial fraud in the capital market is mainly manifested through information disclosure, which harms the interests of investors.
Regarding the illegal disclosure of financial fraud information at different stages, the Criminal Law stipulates different charges and corresponding penalties.
In judicial case handling, attention should be paid to distinguishing the criminal law norms in violation of information disclosure behaviors in different periods. Different crimes and multiple crimes are applied according to the constituent elements of the criminal law; for new criminal facts and clues found in the review, they should be returned to the public security agency for additional investigation or by themselves Investigate, find out the facts, and prosecute in accordance with the law.
Fraudulent issuance of bonds
[Basic case] Lu Mouwang, chairman of Zhongmoutong Machinery Manufacturing Co., Ltd., to raise funds for the issuance of private equity bonds, after colluding with Lu Mouxuan and Lu Mouguang, inflated the company's operating income by more than 513 million yuan and inflated total profits by more than 131 million Yuan, the inflated capital reserve fund was more than 65.55 million yuan, the fictitious line of credit of a bank was 5 million yuan, and the foreign debt was more than 20.25 million yuan.
After Limou accounting firm undertook the audit project of Zhongmoutong Company, Yang Moujie, the deputy director of a branch of the firm, implemented organization and management activities in issuing a major misrepresentation report; project manager Chen Mouming implemented on-site audit and first draft Drafting behavior; Wang Mouyu, as the authorized signing certified accountant of the firm, issued the audit report hastily without reviewing the audit report of Zhongxuntong in accordance with the auditing standards; Xu Mou, as a certified public accountant, did not actually participate in Zhongxuntong In the case of an on-site audit of the project, the audit report should be signed at the request of Yang Moujie.
After filing with the Shanghai Stock Exchange, Zhongmoutong Company non-publicly issued two-year private placement bonds totaling 100 million yuan, which were subscribed by relevant investors.
Among them, two investors respectively subscribed for the private placement bonds under Bian's introduction, and Bian received a bribe of 1.5 million yuan from Zhongmoutong.
After the maturity of the private placement bonds, Zhongmoutong Company was unable to repay the bond principal and part of the interest, causing significant economic losses to investors.
[Procedure] In August and November 2017, the Shanghai procuratorial agency charged Bian as suspected of taking bribes to non-state staff, and Yang, Chen, Wang, and Xu were suspected of major inaccuracy in issuing supporting documents. Certain Tong Company, Lu Mouwang, Lu Mouxuan and Lu Mouguang sued for the crime of fraudulent bond issuance.
In the end, the court sentenced Bian Mou to fixed-term imprisonment of two years and six months; sentenced Yang Moujie and four others to suspended sentences; sentenced Zhong Moutong Company to a fine of 3 million yuan, Lu Mouwang fixed-term imprisonment of three years and six months, and Lu Mouguang fixed-term imprisonment For two years and six months, Lu Mouxuan was sentenced to two years in prison and two years of probation.
[Typical Significance] Securities companies, accounting firms, law firms and other intermediary agencies in the capital market are "gatekeepers" for the effective implementation of information disclosure and investor protection systems. Intermediary agencies’ failure to perform their duties in accordance with laws and regulations will seriously affect The healthy operation of the capital market.
While punishing market entities’ financial frauds, they should take the initiative to carry out "one case double investigation", and simultaneously review whether relevant intermediary agencies provide false certification documents, issue certification documents that are inaccurate, and non-state employees accept bribes and other illegal and criminal behaviors, and conduct legal actions in accordance with the law. Investigate the legal responsibilities of relevant entities, guide market entities to operate legally and intermediary agencies to perform their duties in accordance with laws and regulations.
The first case of recommending stocks for profit
[Basic case] 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, and the total illegal gains amounted to more than 43.1 million yuan.
[Results] In April 2018, the China Securities Regulatory Commission made an administrative penalty decision and determined that the above-mentioned behavior of Liao Mouqiang violated the provisions of Item 4 of Article 77 of the 2005 Securities Law and constituted a situation of manipulation of the securities market and decided to confiscate Liao Mouqiang illegally earned more than 43.1 million yuan and fined more than 86.2 million yuan.
[Typical Significance] This case is the first case in which a non-special identity subject has been punished by the China Securities Regulatory Commission for “grabbing the hat” to manipulate the market. The essence of the “grabbing” manipulation is that the parties have market influence and they use their influence to recommend and evaluate , Predict the stock, and then make a profit by reverse trading.
The administrative law enforcement agencies rectified the "black mouth" chaos in the stock market, and severely cracked down on illegal acts that seriously disrupted the order of the securities market and harmed the interests of investors.
New cases of market manipulation
[Basic case] An investment company is qualified as a private equity fund manager, and uses 4 private equity product accounts issued by it through actual control, as well as two asset management plan accounts under entrusted management and 11 special wealth management accounts, totaling 17 accounts , The advantage of centralized funds, the use of intraday pull-up, reverse trading, intra-day or next-day reverse trading, late-day pull-up and other methods to trade Yongmou company stocks, affect the stock price, a total profit of more than 6.81 million yuan.
At that time, Mr. Liu, the executive president, director and investment manager of an investment company, was specifically responsible for the investment decisions of the account group.
[Processing Results] In July 2018, the China Securities Regulatory Commission made an administrative penalty decision and determined that the above-mentioned behavior of Tong an investment company violated the relevant provisions of the 2005 Securities Law and constituted a securities market manipulation.
The China Securities Regulatory Commission decided to confiscated more than RMB 6.81 million of illegal income from an investment company and imposed a fine of RMB 13.62 million; Liu was given a warning and a fine of RMB 300,000.
[Typical significance] Private equity funds have the characteristics of high leverage, complex product structure, and low transparency. Effective prevention of industry risks is essential to the healthy development of the market.
The China Securities Regulatory Commission will continue to strengthen the governance of the private equity fund industry, strictly urge private equity institutions and practitioners to increase their legal awareness, insist on operating in compliance with laws and regulations, and severely crack down on fraud, profit transfer, insider trading, market manipulation and other illegal activities, and focus on standardization The market order of the private equity industry will effectively protect the legitimate rights and interests of investors.
News from Beijing, November 6