Big news in the financial circle! Illegal profit of 159 million, sentenced!

China Fund News reporter Zhang Yanbei

Recently, the case database of the people's court published a case of misappropriation of funds by the deputy general manager of the department of a futures company for illegal profits.

The details of the case show that the main culprit Zhao Moujia took advantage of his position to change the custody status of the company's funds for personal profit by deception, and sought huge benefits from it, and some of the funds were even used to manipulate the securities market, and was finally sentenced to 9 years in prison. In addition, the two accomplices were each sentenced to six years' imprisonment.

This case is a typical case of embezzlement of public funds, involving a huge amount of money and concealed criminal means, which has certain enlightening significance.

The vice president of the asset management department of the futures company was involved in illegal capital allocation operations and made illegal profits of about 159 million yuan

Let's take a look at the basic facts of the case first.

From November 2017 to May 2018, Lu Futures Co., Ltd. (hereinafter referred to as Lu Futures Company) successively issued three to seven phases of Lu Wantai Asset Management Plan (hereinafter referred to as FOF Fund) through funds raised by a bank.

In order to meet the regulatory requirements of asset management business, Lu Futures Company decided to invest fund products in private equity funds, and introduced an over-the-counter option trading model to maintain the net value of the fund to ensure stable returns for fund products.

However, in the course of operation, Zhao Moujia took advantage of his position as the deputy general manager of the asset management department of the futures company and the investment manager of the FOF fund, and with the assistance of Zhao Mouyi, an employee of the asset management department, he began to contact the private equity fund company and carried out channel business without the company's knowledge. That is, the FOF fund of a futures company in Lu purchases the private securities investment fund issued by the private equity fund company, and then the private equity fund company transfers all the trading rights and most of the risk management (hereinafter referred to as risk control) permissions of the private equity fund.

From February to November 2018, after financing the fund products issued by two private equity fund companies in a securities company, Zhao Moujia lent 800 million yuan of fund trading shares to Shi and others through Lei's introduction to carry out over-the-counter capital allocation business. During this period, Zhao Moujia asked Shi to transfer about 14 million yuan of allotment interest to the bank account of himself and Zhao Mouyi's wife, which was finally at the actual disposal and use of Zhao Moujia.

From May to August 2018, in order to carry out the capital allocation business on his own, Zhao X A, with the assistance of defendants Zhu X and Zhao X B, organized a fund allocation team based on the relationship between classmates and former colleagues. Zhao Moujia and others successively contacted and docked with other private equity fund companies to carry out channel business, issued fund products, and used the funds raised by FOF funds of 536 million yuan for capital allocation after financing by securities companies.

From June 2018 to January 2019, Zhao Moujia and others obtained a total of about 159 million yuan of illegal gains such as interest on capital allocation. Among them, more than 100 million yuan was used by Zhao Moujia to manipulate a stock.

"One master and two slaves"

All three of them committed the crime of misappropriation of funds

The effective judgment of the court held that Zhao Moujia took advantage of his position, with the help of Zhu and Zhao Mouyi, to embezzle the funds raised by his unit from customers for personal use, or used them for criminal activities of manipulating the securities market, and sought huge illegal benefits from them, and the acts of the above-mentioned defendants all constituted the crime of misappropriation of funds, and the amount was huge.

In the crime of misappropriation of funds, Zhao X A played a major role and was the principal offender, while Zhu X and Zhao X B played a secondary role and were accomplices.

Specifically, Zhao Moujia took advantage of his position as the deputy general manager of the company's asset management department to manage and operate FOF fund products, and with the assistance of Zhao Mouyi and Zhu, he contacted five private equity fund companies to issue private equity funds as an investment channel for FOF fund products, and concealed from Lu Mou's futures company that he actually controlled FOF fund funds for the purpose of allocating funds for others and establishing a company for others.

In this case, although Zhao Moujia did not directly manage or handle the funds in the FOF fund, the funds were kept in the custody account of the private equity fund and were not transferred to other accounts. However, behind the company's back, he took advantage of his position as deputy general manager of the asset management department to transfer his management authority through a private equity fund company, and actually obtained the right to control and use the funds, which were then used by his team or handed over to others for capital allocation, which is a misappropriation of unit funds for personal use in the sense of the criminal law.

In terms of joint crimes, Zhao Mouyi, as an employee of Lu Mou Futures Company, in the course of performing his job duties, clearly knew that the purpose of Zhao Mou A's channel business through private equity fund products was to seek personal interests by allocating capital to others, and that it was not the company's legitimate business method and business behavior, but still actively contacted and connected with a number of private equity fund companies. and provided his wife's bank account, which was used to collect interest paid by others in the early stage of Zhao Moujia's allocation, and cooperated with the development of OTC options business and obtained huge profits during most of the allotment.

Zhu knew that the funds embezzled by Zhao Moujia belonged to the funds raised by Lu's futures company, and that the proceeds from Zhao Moujia's allocation of funds for others belonged to him, but he still jointly organized a team with Zhao Moujia and operated and managed the company. In the process of misappropriation, he participated in the drafting of private equity fund contracts, PB system applications, over-the-counter options operation, docking with capital allocation customers and other specific matters. The acts of Zhao X B and Zhu X both played a positive role in helping the implementation and completion of Zhao X A's misappropriation of funds.

The appeal was dismissed

The main offender was sentenced to nine years' imprisonment

To sum up, the court held that Zhao Moujia's conduct constituted the crime of misappropriation of funds, and the amount was huge. As accomplices, Zhao and Zhu should also bear corresponding criminal responsibility. Therefore, the court ruled that Zhao X A was guilty of misappropriating funds and sentenced to nine years in prison, and that Zhao X B and Zhu X were sentenced to six years in prison for the crime of misappropriation of funds.

After the verdict was announced, defendants Zhao X A, Zhu X , and Zhao X B all appealed. The court then dismissed the appeal and upheld the original verdict. According to the information published by the people's court's case database, there are two main points of the adjudication in this case.

First, where Zhao Moujia took advantage of his position as a futures company to manage and operate fund products, and used the method of fabricating facts and concealing the truth to contact other private fund companies to issue private equity funds as an investment channel for fund products, and he himself actually controlled the fund funds and used them for profit or for illegal and criminal activities to obtain illegal benefits, it is "misappropriation of the unit's funds for personal use" as provided for in article 272 of the Criminal Law.

Second, where the actor clearly knows that the purpose of other actors to carry out channel business through private fund products is to seek personal interests by allocating funds to others, and is not the legitimate business method and business conduct of the fund-raising company, but still actively contacts and connects with the private fund company, and provides a bank account for collecting interest on the allocation of funds, cooperating with the development of over-the-counter options business, and other matters;

Editor: Captain

Review: Xu Wen