Mystery account manipulation process: the funds involved in billions of dollars, hundreds of manipulation account.
Last year, China's capital market investigated and dealt with a number of major cases, today we will focus on a case involving the use of billions of dollars of funds, the manipulation of hundreds of accounts in violation of the law, this case has become the focus of the Securities and Futures Commission last year to audit.
In 2016, in the trend of smooth stock market, a company's share price, but there is an unusual continuous surge, which ultimately triggered the Shenzhen Stock Exchange big data monitoring system alarm. The increase in this stock reached 100 percent in four months.
Market monitors initially analyzed and found that this company named "Dalian Electric Porcelain" behind the big rise in stock prices, there is a puzzling doubt: it does not have any major good news support. What kind of force is driving this strange surge it ? Investigators through the system to retrieve the frequent trading of this stock more than 400 information, one by one to analyze. After layers of screening, initially locked more than 200 individual accounts. The most suspicious thing is that they never buy and sell other stocks, only focus on the "Dalian Electric porcelain" this one stock , flip back and forth speculation. This is a far cry from the regular behavior of ordinary shareholders.
Shenzhen Stock Exchange staff: and account profits are very impressive, as of December 2016, we reported these accounts account profits have been more than 6 billion.
More than 200 individual accounts, speculating on only one stock, and everyone is a stock god with daily profits? With such a question, the inspection department of the case officers of the more than 200 suspected account close monitoring, from the thousands of traces of the transaction, found hidden in the behind the scenes of the mysterious black hand. A self-proclaimed "North China first trader" stock trader Li Weiwei.
The SFC investigators: he ordered more frequently, his bank account with the accounts of those who match the funds, there are a lot of money exchanges, so then he was listed as a focus of the investigation.
Behind the big fish the case continues to escalate
More than 200 individual accounts of abnormal trading behavior, so that the case officers initially judged that this is a lobbying case. However, when the case officers are ready to start on-site investigation, suddenly jumped out of a big fish - Shenzhen Stock Exchange system suddenly monitored a 1 billion yuan of institutional accounts in Shanghai appeared, and frequent trading "Dalian electric porcelain" shares This is the first time in the history of the company's business.
The investigation into the case was conducted by the U.S. Department of Justice, which found the case to be a major one, and that the case was not a major one.
Investigators found that the fund account behind the investor and a company called Fuxing Group, the office is labeled the same address through the registration information. The investigator's attention turned to this Fuxing Group. At this time, more unexpected situation appeared, Fuxing Group responsible person Zhu Yidong's identity, the original very special, he is the "Dalian Electric Porcelain" listed company's de facto controller's son.
Three way manpower at the same time to start the scene of the investigation
"Dalian Electric Porcelain" is the actual controller of the chairman of the board of directors of Zhu Guancheng, his son Zhu Yidong's appearance, so that the case officers realize that the case is far more complex than the initial presentation of the case. Zhu Yidong's appearance and his father's listed companies how? And is he connected to the more than 200 suspect accounts that were initially discovered?
After getting hold of the appropriate evidence, the case officers decided to launch an on-site investigation. Before leaving, the case officers showed us three clues: the location of the "Dalian Electric Porcelain" listed company - Dalian, Zhu Yidong personal company office - Shanghai, Suspected of manipulating more than 200 accounts Li Weiwei - registered company in Beijing. The same morning, the case officers divided into three, suddenly appeared in Dalian, Shanghai, Beijing, three places in advance to lock the address.
In Dalian, the case officers met Zhu Guancheng, chairman of the listed company, and found that he was not at all familiar with the affairs of the listed company. And from the company's secretary of the board of directors as well as other staff there to understand, Zhu Guancheng is already retired state, the company's actual operation is by his son Zhu Yidong in charge . In other words, Zhu Yidong is the decision maker of all the information of the listed company.
And on the Beijing side, where it was locked down in advance, the case officers pounced and failed to find Li Weiwei. People familiar with Li Weiwei could not find him either.
In Shanghai's Fuxing Group, Zhu Yidong likewise failed to show up.
Even the company's other principals did not appear, but the footsteps of the case did not stop, in the inspector's repeated requests, Fuxing Group, head of the Securities and Investment Department, Song finally showed up, but when questioned, claimed to have no knowledge of the purchase and sale of "Dalian Electric Porcelain" shares.
However, the details of Song's case showed that he was hiding something. Investigators found that Song's office had obvious signs of having been cleaned up, and even the cell phone he provided was so clean that it didn't even have his family's phone numbers stored on it. However, when the investigation entered its second day, Song suddenly lost contact. At the same time, the entire Fuxing Group's office was empty, and the cell phones of Zhu Yidong, Song and other relevant personnel were all turned off.
The detour breakthrough key evidence nowhere
The expected soft confrontation appeared, the case officers continue to methodically proceed to the three places to obtain information to compare. More investigators looked for clues and gathered evidence from those involved in the periphery.
Site investigation into the fourth day, a group of important clues have not escaped the eyes of the case officers: Beijing side, the case officers grasped Li Weiwei once in Shanghai, a hotel for others to manipulate; Shanghai side, the investigators from the Fuxing Group of a staff member of a hotel found a huge bill, which is also clearly labeled Li Weiwei's name. Beijing and Shanghai's chain of evidence accurately docked. Next, the five-star hotel, located near Shanghai's Hongqiao Airport, became the focus of the investigation.
The hotel's occupancy records show that a presidential suite was chartered for a long time, and the guest's name was Li Weiwei. And the presidential suite cost of signing the bill hanging account number shows that at all costs to pack this presidential suite, it is Zhu Yidong in charge of the Fuxing Group. The presidential suite is hiding what unknown secrets?
SFC investigators: the scene we found a computer, this computer has dozens of securities companies order software, computer inside there are some accounts of the use of records, in the case of the parties involved in the hotel room also found the same batch of purchases of more than two dozen packing list.
Through technical comparison, the investigation team confirmed that this computer and the same batch of purchase of more than 20 computers, is used to order centralized buying and selling of "Dalian Electric Porcelain" stock equipment.
Hidden and suspected of manipulating nearly 500 accounts
After several rounds of on-site investigations, the inspectors mastered the written evidence, information is more and more rich, but it also means that the subsequent analysis of the workload is also geometrically increasing.
With the deepening of the case, the investigation team found that the case is very covert.
SFC investigators: it in order to circumvent the monitoring of the exchange, it will be today with a batch of accounts, used after he hurriedly changed, no longer use this batch, and then changed to the next batch, continue to so manipulation.
The case has progressed to the point where the suspected accounts have long been more than just the initial 200 or so suspicious accounts floating on the surface. Suspected account straight up to as many as 600, they are scattered hidden in 78 brokerage account, used to the national brokerage two-thirds of the total, the location is spread over 20 provinces and cities.
After professional comparison and analysis, investigators eventually locked 495 of these accounts, clearly sorted out the connection between the accounts and the veins of the financial transactions, the evidence and the peripheral investigation of other evidence, mutual confrontation, corroborated the irregularities of the operation of the facts.
Combing the evidence, the case of the mystery solved
After the interviews with the content of the conversation, the case officer solved the mystery one by one, the truth of the case slowly surfaced.
After organizing and analyzing the relevant evidence, the investigation team found that, in cooperation with the investigation, swore that the Fuxing Group securities chief Song Moumou, obviously lying.
SFC investigators:In fact, he is a very important one in this case core personnel. He is the head of Fuxing Group's securities investment department, he is mainly the implementation of Fuxing Group boss Zhu Yidong's instructions including and matching institutions, Li Weiwei and other personnel docking, reconciliation is his participation.
And in the suspects involved in the sale of "Dalian Electric Porcelain" shares of the late, whenever the concentration of buying, the company will release favorable announcements, boosting the price of a wave of rising. And this is with the actual control of this listed company Zhu Yidong close relationship.
SFC investigators: the listed company's secretary, including his side is to say and the listed company contact Fuxing Group several people, are saying that this information is derived from Zhu Yidong, they are entrusted by Zhu Yidong to do these.
When the case officers basically clear up the case, Zhu Yidong himself also returned to the mainland from Hong Kong, to the case officers admitted the above operation behavior.
In May 2016, Zhu Yidong authorized Song Moumou and Zheng Moumou to purchase "Dalian Electric Porcelain" shares in the form of capital allocation; in June, Zheng Moumou to the external so-called "North China's first trader," Li Weiwei introduced to Zhu Yidong, to operate; in the two sides Agreed how to share, July funds to start trading "Dalian Electric porcelain"; they use the capital advantage and control of "Dalian Electric porcelain" disclosure, waiting for an opportunity to release favorable, to help their own profits.
Chicken chickens
In this case, Zhu Yidong found from the so-called "North China's first trader" Li Weiwei, with hundreds of accounts covert operation, is that we see in the big net of the hundreds of small fish. Then why would there be a big fish that manipulates billions of dollars? This turned out to be Zhu Yidong "to take the risk", let his own company to set up a fund began to manipulate their own stocks.
Li Weiwei in the process of manipulation, and not in accordance with the pre-agreed ratio of capital allocation, but to privately increase leverage, and the allocation of more money to buy and sell other stocks. The company's stock price fluctuated sharply, and Zhu Yidong used money from his own company account to maintain the stock price.At the end of February 2017, another stock purchased by Li Weiwei burst into flames, with two consecutive stops, and the placement account was forced to be closed by the contributor. .
After being closed, "Dalian Electric Porcelain" shares were sold in large quantities, the stock price fell sharply, Zhu Yidong had to suspend trading in the name of a major asset reorganization, which also led to many small and medium-sized investors were trapped.
The SFC will impose administrative penalties on the parties involved in this case according to the law after the fulfillment of the relevant procedures. Since last year, the SFC has also severely investigated and punished a number of actual controllers of listed companies, such as Zhu Dehong and Que Wenbin, who similarly released favorable information with the intention of influencing stock prices. The regulator once again reminded that the name of market value management shall not be abused to manipulate the market, otherwise it will be severely punished according to the law.