A “flyer” incident reappeared in the banking industry, this time involving Hua Xia Bank Co.Limited(600015) .
A few days ago, according to a second instance judgment disclosed on the judgment document website, Hua Xia Bank Co.Limited(600015) Chang’an sub branch customer manager Zhao privately sold non bank financial products to customers, resulting in the loss of more than 2 million yuan to the customer Ms. Cheng. Ms. Cheng took Hua Xia Bank Co.Limited(600015) to court for compensation.
The focus of dispute in the case includes whether Hua Xia Bank Co.Limited(600015) Beijing Branch and Hua Xia Bank Co.Limited(600015) Chang’an sub branch are at fault and bear tort liability, and whether they have the obligation to pay overdue interest to Ms. Cheng.
Finally, the court found that Hua Xia Bank Co.Limited(600015) had omissions in internal management, and determined that Hua Xia Bank Co.Limited(600015) Chang’an sub branch and Hua Xia Bank Co.Limited(600015) Beijing branch should first bear the liability for compensation within 20% of the degree of fault. Ji, the founder of the private placement company involved, and Zhao, the customer manager, were also punished according to law for constituting the crime of illegally absorbing public deposits.
old lady failed to pay more than 2 million yuan
According to the referee document network, Ms. Cheng was born in 1951 and lives in Xicheng District, Beijing. From 2011 to 2014, Ms. Cheng purchased financial products sold and recommended by her staff in Hua Xia Bank Co.Limited(600015) Chang’an sub branch for many times.
In 2014, Ms. Cheng signed the limited partnership agreement of Beijing Yuanxiang TONGYING Investment Center (limited partnership) under the recommendation and introduction of Zhao, an employee of Hua Xia Bank Co.Limited(600015) Chang’an sub branch, which agreed that the amount of Ms. Cheng’s partnership as a limited partner was 2.15 million yuan, the expected annual income was 11%, the investment period was 12 months, and the subscribed shares were paid in one lump sum. On May 13, 2014, Cheng Xianghong remitted 2.15 million yuan to the account of Beijing Yuanxiang TONGYING Investment Center (limited partnership).
However, in May 2015, Ms. Cheng did not receive the principal and income of the partnership fund after the expiration of the date for returning the principal and income of the Partnership Fund agreed in the partnership agreement.
employees involved in the case participated in the illegal absorption of more than 26 million yuan
The document shows that the private placement company involved in the case is not simple. Partner Ji joined hands with bank employees of Hua Xia Bank Co.Limited(600015) , Industrial Bank Co.Ltd(601166) to find investors, illegally absorbing more than 480 million yuan of funds from 181 investors, resulting in a loss of more than 190 million yuan. Zhao, the employee involved in the case, also participated in the illegal absorption of funds of more than 26 million yuan, causing investors to lose more than 10 million yuan.
According to Ji, after finding a suitable project, he will inform Zhang, the account manager of Hua Xia Bank Co.Limited(600015) Liangmaqiao sub branch, Hu, the customer manager of Industrial Bank Co.Ltd(601166) Jishuitan sub branch and others of the four core product contents of the product in the form of PPT, asking them to help find investors. The income he packaged to Zhang, Hu and others ranged from 9% to 18% according to the investment amount.
Zhao said that Wang and Zhang successively asked her to help sell a fund product, and then she promoted it to her customers in Hua Xia Bank Co.Limited(600015) and Zhang gave her a packing Commission of 16% of the investment principal.
The net of heaven is broad, and there is no omission. In July 2020, the court ruled as follows: Ji committed the crime of illegally absorbing public deposits and was sentenced to fixed-term imprisonment of 7 years and 6 months and a fine of 350000 yuan; Zhao committed the crime of illegally absorbing public deposits and was sentenced to fixed-term imprisonment of 2 years and 8 months and a fine of 80000 yuan; Order Ji and Zhao to refund the economic losses of the investors.
After that, Ms. Cheng took Hua Xia Bank Co.Limited(600015) beijing branch and Hua Xia Bank Co.Limited(600015) chang’an sub branch to the court for compensation for their losses.
multiple “flyer” events
The Hua Xia Bank Co.Limited(600015) , which is involved in this case, has had several “flyer” incidents in recent years and has been punished for inadequate employee management.
According to the documents, Hua Xia Bank Co.Limited(600015) Beijing branch had a number of employees illegally promoting and selling private equity funds and other third-party financial investment products not sold by the bank to customers from 2013 to 2015, involving large amounts, many sub branches (business units) and bad social impact. Beijing Banking Regulatory Bureau believed that Hua Xia Bank Co.Limited(600015) Beijing branch had serious loopholes in the internal control of employees’ daily behavior management, ordered Hua Xia Bank Co.Limited(600015) Beijing branch to make corrections and imposed an administrative penalty of 500000 yuanP align = “center” source: Official Website of Beijing Banking and Insurance Regulatory Bureau
On May 17, 2019, the judgment document website disclosed several civil judgments of the second instance of Hua Xia Bank Co.Limited(600015) Beijing Gongzhufen sub branch’s tort liability dispute. According to the judgment, Shen, the former personal account manager of Hua Xia Bank Co.Limited(600015) Gongzhufen sub branch, privately sold “financial products” sold by non bank organizations to 43 investors from September 2013 to 2014 and illegally absorbed more than 50 million yuan of public deposits. In the second instance, Beijing Haidian District People’s court ruled that Hua Xia Bank Co.Limited(600015) Gongzhufen sub branch had 20% of the degree of fault and was liable for compensation in advance.
In the aforementioned lawsuit involving Hua Xia Bank Co.Limited(600015) Chang’an sub branch, Zhao also said that in the summer of 2014, Zhang said that there was a problem with the payment collection of the product and she couldn’t cash it, so she went to Ji and found that many Hua Xia Bank Co.Limited(600015) employees were helping Ji sell products and couldn’t cash it.
As for whether Hua Xia Bank Co.Limited(600015) should be held responsible in this case, the court held that, as Zhao’s work unit, Hua Xia Bank Co.Limited(600015) Chang’an sub branch failed to find Zhao’s private sale in time through effective internal control measures, and there was a causal relationship between Hua Xia Bank Co.Limited(600015) Chang’an sub branch’s fault of violating prudent operation rules and Ms. Cheng’s investment loss.
Finally, the court upheld the judgment of first instance Hua Xia Bank Co.Limited(600015) Beijing Branch and Hua Xia Bank Co.Limited(600015) Chang’an sub branch paid 42241821 yuan of property damage compensation to Ms. Cheng.
