The Shanghai Zhongjin illegal fund-raising case, which had attracted widespread attention before, had a verdict of the first instance.
On September 19, the Shanghai No. 2 Intermediate People's Court issued a first-instance public judgment on the fund-raising fraud case of the defendant Guotai Investment Holdings (Group) Co., Ltd. and the defendant Xu Qin, and sentenced Guotai Group to the crime of fund-raising fraud.A fine of 300 million yuan was imposed, and Xu Qin was sentenced to life imprisonment, deprived of political rights for life, and all personal property was confiscated; nine people including Chen Jiajing were sentenced to fixed-term imprisonment ranging from 12 to 5 years.
The court found that since October 2011, the defendant Xu Qin successively set up Zhongjin Finance Company, Zhongjin Fund Company and the defendant unit Guotai Group, and Guotai Group uniformly arranged the financial, operation and personnel affairs of the subordinate companies..In order to seek illegal benefits, Xu Qin and other 10 defendants knew that the Guotai Group and its subordinate units were not profitable, and still used the name of private equity funds to conduct various false propaganda to the unspecified public, promising to repay the principal and pay high sums of money.interest, and jointly commit fund-raising fraud.As of April 5, 2016, when the incident occurred, the illegal fundraising had accumulated more than 40 billion yuan, and the unpaid principal at the time of the incident totaled more than 4.8 billion yuan, involving more than 12,000 fundraising participants.
According to the court notice, the vast majority of the 40 billion funds raised were consumed by Guotai Group, squandered on repaying principal and interest, paying high commissions, leasing luxury office space, buying luxury cars, luxury travel, advertising, etc.According to the previous reports from the police, Xu Qin and other senior executives lived extravagantly.Xu Qin once raised peacocks at his home in Tangchen Yipin, Pudong.
The outbreak of illegal fund-raising by the Zhongjin Group broke out in April 2016, when Xu Qin and others were intercepted by the police when they were trying to leave the country at the airport, and the case surfaced.According to a number of former employees and investors of the Zhongjin Department, the Zhongjin Department claims that its main business is private equity investment funds.According to the filing information on the official website of the China Asset Management Association inquired by the Caixin reporter at that time, there were 11 funds established in the form of limited partnerships under the Zhongjin Equity Investment Fund Management (Shanghai) Co., Ltd. at that time.According to the police report, the Zhongjin Department has established about 220 limited partnerships to raise funds.
According to the product introduction of the Zhongjin series previously obtained by Caixin reporters, the starting investment for various products of the Zhongjin series is 50,000 yuan, the closing period ranges from 0 days to 1 year, and the expected annualized investment rate of return is from 4%—; ranging from 14%.Introduced by several investors, they all signed contracts offline to purchase products through the introduction of the company's financial consultant staff.
According to the promotional materials of the fund raised in the last phase of the Zhongjin Group, the funds of the Zhongjin Group are invested in the convertible bonds and equity of non-listed companies, and then through the merger and acquisition, listing or asset securitization of the invested projects, the secondary market exits to realize income..However, on the third day after the incident, Caixin reporters visited the Guotai Holdings Group Entrepreneurship Center in Shanghai and found that the so-called companies invested in the name of private equity funds had disappeared overnight.
According to the court notice, as of now, relevant bank accounts, real estate, cars, equity and other properties have been sealed up, seized, and frozen in this case.At present, the work of recovering stolen goods and recovering damages is still in progress, and the recovered assets will be transferred to the enforcement agency, and will eventually be returned to the fund-raising participants in proportion.
An investor from the Jin Dynasty said that he had previously registered losses with the public security organs, and some investors had issued legal opinions through lawyers to register, but they have not yet recovered their losses, and have not yet obtained information on the progress and proportion of the return of funds.announcement of.■
