Recently, the Shanghai Municipal People’s Procuratorate disclosed a crime of manipulating the securities market in recent years. The suspect and the executives of listed companies collude with each other to manipulate the stock price. Only 3 principal offender illegally earned more than 5 billion yuan. Finally, they were prosecuted by the procuratorial organ and sentenced to eight years to two years’ imprisonment respectively.
Gu Jia, director of the third procuratorial department of the first branch of the Shanghai Municipal People’s Procuratorate, introduced that in early 2015, the defendants and the actual controllers of the listed company s Co., Ltd. (hereinafter referred to as “s company”) he and mai (handled separately) agreed with the defendants Huang and Wen to sell all the shares of S company Jiang, the defendant recommended by Wen and Huang, acquired it at a step-by-step premium with a total price of no less than RMB 3.8 billion.
He and Mai cooperate with Huang and Wen to control s company to issue favorable announcements such as “private placement” and “high transfer” to boost the share price. Meanwhile, based on the above information advantages, Mr. Huang and Mr. Wen bought and sold the shares of S company continuously in the secondary market through their own or other accounts under their control. Through agreement transfer and trading of S company’s shares in the secondary market, Huang, Wen and Jiang made illegal profits of more than 1.49 billion yuan, 1.55 billion yuan and 2.06 billion yuan respectively (including floating profits); He Moumou, Mai Moumou and others cashed out a total of more than 3.846 billion yuan by agreement transfer, and he Moumou and Mai made illegal profits of more than 185 million yuan respectively.
In May 2018, the first branch of the Shanghai Municipal People’s Procuratorate filed a public prosecution against the defendant Huang Moumou and other five people suspected of manipulating the securities market. In December 2018, Shanghai No. 1 Intermediate People’s court sentenced five defendants to fixed-term imprisonment ranging from eight years to two years and fined them ranging from 500 million yuan to 10 million yuan. After the defendant appealed, the Shanghai Higher People’s court ruled to reject the appeal and upheld the original judgment in August 2020.
Gu Jia said that in recent years, more and more criminal suspect manipulated the securities market, in the name of “market value management”, he argued that he did not constitute a crime. In fact, there is a clear “red line” boundary between legally compliant market value management and illegal and criminal acts of manipulating the securities market: first, it is not allowed to control the rhythm of information disclosure, selective information disclosure and false information disclosure; Second, no insider trading or manipulation of stock prices for illegal interests; Third, the legitimate rights and interests of listed companies and small and medium-sized investors shall not be damaged. In this case, the behavior of Mr. Huang and others is in violation of the above red line. It is a manipulation crime under the cloak of “pseudo market value management”. It has violated the criminal law, so it has been accurately attacked by the judicial organ.
In 2011, in order to better serve the construction of Shanghai international financial center, the financial procuratorial Office of Shanghai Municipal People’s Procuratorate was officially established, becoming the first professional case handling department of Finance and intellectual property among provincial procuratorial organs in China, and a special financial and intellectual property procuratorial organization and professional case handling team covering the three-level procuratorates of the city were established. Over the past decade, Shanghai’s financial and intellectual property procuratorial departments have handled more than 17000 cases of review and prosecution of financial crimes, more than 26000 people, more than 5000 cases of review and prosecution of intellectual property crimes and more than 10000 people.
(people’s daily)
