The legal net was restored, and the omission was not leaked.
Shi Jianxiang, the founder of Kuailu Group, who illegally raised 43.4 billion yuan in China and caused 40,000 victims to lose up to 15.2 billion yuan, was arrested in the United States last week.
When promoting virtual currency in the United States
under arrest
According to the official website of the U.S. Department of Justice, recently, the Florida Southern District Attorney's Office released the news that in the federal jury indictment, 57-year-old Chinese businessman Shi Jianxiang was accused of using a fraudulent visa to enter the United States, and he will continue to wait for trial in Miami Prison.
More details of Shi's arrest were disclosed in the statement. Last week, Shi was arrested at a conference event about cryptocurrency investment in Las Vegas.
(Netizens broke the news: Shi Jianxiang, who participated in the Money20/20 promotion of his cryptocurrency in Las Vegas, was arrested by the federal plainclothes at the Venetian Hotel)
On October 28, Shi Jianxiang appeared in U.S. federal court for the first time, and the federal magistrate, believing that he had the possibility of escaping, ordered his arrest and detention, and will continue to wait in Miami Prison for trial.
According to Technology Finance Online, Shi Jianxiang issued a digital currency Feather to Fame BMS in the United States, a commercial application platform that claims to feature action stars and provide opportunities to join the ranks of action stars in Hollywood; there is a decentralized blockchain voting mechanism; FF tokens (FF Tokens, FTTs) can be circulated, consumed and used in movies, sports, action star reality shows, online stores and online game venues.
The FFT private placement round started in 2019 and ended in November 2020, with the OTC price rising from 0.3 USDT to 10USDT.
Fraudulently hold two nonimmigrant visas
Or face up to 10 years in prison
As for the reasons for Shi's arrest, the U.S. Department of Justice said in a statement that Shi Jianxiang lied in the process of obtaining a U.S. nonimmigrant visa and used the two visas obtained to enter the United States at Miami International Airport in 2016. The U.S. federal grand jury charged Shi with two counts of fraud and misuse of u.S. nonimmigrant visas.
According to the indictment, Jianxiang Shi held two nonimmigrant visas in 2016 by deception, saying in both applications that he had never used another name and that he had a fake identity and travel documents called "Long Niu". Prosecutors said Shi entered the United States in February 2017 using travel documents of "Long Niu" status, and subsequently lived in California and Nevada as "Morgan Shi" in the future. If convicted, Mr. Shi could face up to 10 years in federal prison and a fine of up to $250,000.
Act high-profile in the United States
Donations were also made to Trump
It is worth mentioning that Shi Jianxiang was included in the Red Notice list by Interpol as early as January 2017 for fleeing to the United States for suspected fundraising fraud.
According to Wall Street reports, Shi Jianxiang came to the United States and acted in a high profile, not only promoting virtual currency in the United States, but also running a film and television investment company in Hollywood.
In December 2017, Shi Jianxiang took a picture with U.S. President Donald Trump at a fundraising event in New York. It also donated $50,000 to a political action committee linked to Trump and the U.S. Republican Party, at an investment firm it controls, Moregain Capital Group.
In addition, Shi Jianxiang also tried to launch cryptocurrencies in 2019 with the American boxing champion Tyson, who appeared in the movie "Ip Man 3" in which he invested in production, but Tyson refused.
Wall Street reports pointed out that the U.S. Securities and Futures Commission in September this year canceled Shi Jianxiang's U.S.-controlled film and television investment company Moregain Pictures Inc. all securities. Because, since 2019, the company has not released a financial report.
"Ip Man 3" led to a major case of 40 billion yuan of illegal fund-raising
According to previous public reports, Shi Jianxiang is a native of Shanghai, poor in childhood, began to start a business in his 20s, and has worked in printing plants, oil company agents, clothing, trade and other fields.
In the reform of state-owned enterprises in 1999, four state-owned enterprises in Shanghai declared bankruptcy, and Shi Jianxiang acquired them all, including Shanghai Kuailu Wire and Cable Co., Ltd., which was entrusted by the Changning District Government. "Kuailu" produced the first domestic telephone line, which is also the origin of the name of shi Jianxiang's later founding group.
In 2010 and 2012, he obtained two licenses, small loan and financing guarantee, and officially entered the financial industry. In the following years, Kuailu Group relied on the internet finance, film and television investment that exploded at that time to grow rapidly, and frantically absorbed private funds through the model of "left-handed stars and right-handed capital".
The last thing that triggered the break in the capital chain of The Fast Deer Group was the movie that the whole people complained about - "Ip Man 3".
First, Shi Jianxiang spent 200 million yuan to buy the mainland distribution rights of "Ip Man 3", and then acquired a small film distribution company through Shifang Holdings, a Hong Kong-listed company controlled by himself, and renamed it Big Screen Film Distribution Company as the distributor of "Ip Man 3".
In this way, the box office of "Ip Man 3" will inevitably lead to a sharp rise in the stock price of Ten Square Holdings and achieve profitability in the capital market.
At the same time, a number of P2P and private equity funds under Kuailu sold relevant film income rights transfer wealth management products in the form of crowdfunding and P2P through channels such as "Golden Deer", "China Overseas Investment", "Suning Crowdfunding" and "Jingdong Crowdfunding" before the release of the film.
For example, Kuailu's wealth released a film revenue transfer plan named "Wing Chun Yingtai" on the same day, with a term of 9 months and a product scale of 200 million yuan.
That is to say, Shi Jianxiang's actual investment in "Ip Man 3" actually came from ordinary people (44.820, 0.04, 0.09%) who would buy the above wealth management products.
On March 4, 2016, "Ip Man 3" was finally released, and the box office broke through 100 million in 16 hours, 200 million in 34 hours, and 400 million in 60 hours...
See, a box office blockbuster is about to be born. However, on the second day of the release, some netizens posted a screenshot of the ticket sales situation of a movie theater, a movie ticket sold for 200 yuan, and it was at midnight, and every 10 minutes there was a queue, the most amazing thing was that the scene was full.
Even several third- and fourth-tier cities, such as Yancheng, have surpassed the north, Shanghai and Guangzhou into China's box office rankings. A large number of voices questioning the film's box office fraud on the Internet continued to be heard, and in the end, the State Administration of Radio, Film and Television intervened to investigate and deal with the box office fraud of "Ip Man 3".
The widespread exposure of the "fake box office" incident has plunged "Ip Man 3" and Kuailu Group into a whirlpool of public opinion and a redemption crisis. Jinlu Financial Bank, a wealth management platform under Kuailu Group, was surrounded and squeezed by investors, and many investors came to Jinlu to demand payment.
On April 5, 2016, one month after the box office fraud was exposed, Kuailu Group issued an appointment and dismissal notice, agreeing to Shi Jianxiang's resignation as chairman of the board of directors of Kuailu Group. Shifang Holdings also issued an announcement that Shi Jianxiang, chairman of Kuailu Group, resigned as chairman of the board of directors and executive director of Shifang Holdings due to personal health reasons.
At this time, Shi Jianxiang had already left the United States.
In September 2016, Kuailu Group was filed by the Shanghai police.
In January 2019, the Shanghai No. 1 Intermediate People's Court pronounced a first-instance judgment on the "Kuailu" fund-raising fraud case.
The court fined Kuailu Group, Donghongqiao Small Loan Company, and Donghongqiao Guarantee Company RMB1.5 billion, RMB200 million and RMB200 million respectively for the crime of fund-raising fraud; sentenced Huang Jialuo and Wei Yanping to life imprisonment for fund-raising fraud; Xu Qi was sentenced to 13 years' imprisonment and fined for the crimes of fund-raising fraud and illegally absorbing public deposits; and Zhou Mengmeng, Zhang Lei, Sun Ye, and the remaining 12 defendants were sentenced to fixed-term imprisonment ranging from 15 to 9 years and fined for the crime of fund-raising fraud. Shi Jianxiang, the actual controller of the "Kuailu family" who has not been arrested before fleeing, is still on the red notice fugitive list and will be handled in a separate case.
After trial, it was ascertained that from March 2014 to April 2016, Shi Jianxiang instructed the East Hongqiao Small Loan Company to provide false debt materials, the East Hongqiao Guarantee Company to match the false guarantee letters, and then the Jinlu System and other financing platforms packaged into various wealth management products, together with the fund products issued without authorization by the "China Overseas Investment" financing platform, etc., without the approval of the relevant departments, through the store by holding promotion meetings, sending leaflets and Internet advertisements, randomly making phone calls, holding or sponsoring performances, etc. The Internet and other channels were publicly publicized and sold to the public, thus illegally raising a total of more than 43.4 billion yuan.
According to the results of the court's trial, the illegal fund-raising funds of more than 43.4 billion yuan were transferred to the bank accounts actually controlled by Shi Jianxiang and Kuailu Group, except for more than 28.2 billion yuan that was used to pay the principal and interest of the investors in the early stage, the rest of the money was used to pay various operating expenses, business activities such as equity acquisition and film and television investment, transfer to overseas and purchase of vehicles, and personal profligacy and embezzlement. By the time of the crime, the actual economic losses in the case totaled more than 15.2 billion yuan, involving nearly 40,000 victims.
Source: China Fund News