Tianshan Textile Insider Trading Case Rises Sharply, Suspect Fines Count 10 Million 800 Thousand

A sensation in the Tianshan Mountains

Reflecting on this insider trading case, the legal experts analyzed the five characteristics of heavy paction volume, strong anti investigation ability of the subjects involved, and the concealment of insider information.

Chain of interests exposed

Relevant departments of the securities and Futures Commission disclosed that in February 2010, the SFC set up an investigation on the suspected insider trading in the stock trading of Tianshan wool textile Limited by Share Ltd (hereinafter referred to as "Tianshan textile").

In 2009,

In July 20, 2009, the regional government held a special meeting to discuss and confirm Katie's investment in restructuring Tianshan textile. On the same day, Yao Rongjiang, general manager of Katie investment, drafted Katie's plan to invest and reorganize Tianshan textile.

On the 21 day, Yao Rongjiang and deputy general manager of foreign investment, Cao Ge discussed the specific contents of the reorganization plan and drew up a plan.

On the 22 day, the relevant leaders of the autonomous region government agreed to the plan.

23 days, Tianshan textile suspension, resumption until June 18, 2010, after resumption, pulled out a number of continuous trading.

It is recognized that the above reorganization is the insider information stipulated in the securities law.

The survey found that on the morning of 21, Yao Rongjiang told the Xinjiang Han Yang Investment Company (hereinafter referred to as "Han Yang Investment") legal representative Wang Qing by Hanzi mobile phone, and Hanyang investment actual control was Yao Rongjiang.

Wang Qing learned that he spent 21 days and 22 days in two days using his control "Hanyang investment", "Wang Qing", "Guodong" and "Xinjiang Rong Hui Jin De mining Limited by Share Ltd" account through online pactions to buy Tianshan textile stocks totaling 1 million 285 thousand shares, with a paction value of 8 million 58 thousand yuan.

Cao Ge on the 21 day will reorganize the information by phone to tell his friend Chen Xuesong, and deposited in Chen's bank account of 242 thousand yuan on that day, and ordered Chen Xuesong to buy all the Tianshan textile stocks. Chen Xuesong used my account to buy 125 thousand shares of the stock online on the 22 day, and the paction amount was 798 thousand yuan. On the 22 day, on the 22 day, Cao Ge bought the Tianshan textile through the online paction with his sister-in-law Zhang Rong's account.

In accordance with the relevant laws and regulations, the SFC promptly pferred the case to the Ministry of public security.

In July last year, the public security department put the case on file for investigation, and the relevant suspects were taken detention, arrest and bail pending trial.

In December last year, the Urumqi procuratorate filed a public prosecution against the intermediate court of the city.

Five characteristics deserve vigilance

In January this year, the Urumqi intermediate court made a first instance judgment, and made criminal penalties for all the suspects identified by the SFC, such as fixed-term imprisonment (probation), and a total fine of 10 million 800 thousand yuan.

Reflecting the Tianshan textile insider trading case, legal experts analyzed that the case has five notable characteristics.

First, the influence is great.

The case was the first insider trading case in Xinjiang, and the case involved four natural persons, two units and a large number of subjects.

Two, the amount of paction is large.

Within two days after the information received by the suspect, about 8000000 yuan of funds was invested, and the purchase cost was around 6 yuan. After the resumption, the highest price rose to more than 17 yuan, and the book profits had doubled on the day when the judgment came into effect.

Three, the subjects involved are strong against investigation.

Yao Rongjiang served as general manager of the Katie investment company for a long time as a senior manager of hops (8.88, -0.32, -3.48%) of Xinjiang listed company, familiar with the laws and regulations of the securities market. Cao Ge also had many years of work experience in the securities market. They were good at camouflage in the confrontation with investigators, and looked for various reasons to justify themselves.

The four is the covert pmission of insider information.

The pmission of insider information is through telephone pmission, not sending text messages, leaving no more written traces. The evidence of information pmission is relatively simple, difficult to obtain and not easy to fix.

The five is to avoid the relationship between information insiders and accounts.

They invariably chose to conduct insider trading on account of friends and friends who did not see any relationship and were not easily found. In the capital flow, they could hardly see the relationship. Even if there were contacts, they borrowed other people's bank accounts and did not use their real accounts.