The last time the CSRC focused on the list of 258 platforms illegally engaged in off-exchange fund-raising was in July 2020.
According to relevant laws and regulations, no unit or individual may illegally engage in fund-raising business without legal approval. According to the CSRC, off-exchange fund-raising activities are illegal securities and futures activities, which seriously disrupt the normal order of the capital market and damage the legitimate rights and interests of investors.
In 2020, the securities regulatory authorities cooperated with the public security organs to investigate and deal with major off-site fund-raising crimes 19, and arrested more than 700 suspects. Among them, the amount involved in Chongqing's "Matching Network" rights issue is 55 billion yuan, and with other platforms, the amount involved is about 64.3 billion yuan; Some illegal platforms provide financing leverage as high as 10 times (editor's note: the leverage provided by regular brokerage financing business is not more than 2 times).
Illegal platform, false stock trading
In the typical cases announced by the CSRC, some illegal platforms connect with fund providers (commonly known as "gold owners", the same below) and fund-raising stock customers, involving a large transaction amount; Some illegal platforms provide fund-raising services and even dock futures customers; Other illegal platforms are not connected to the stock exchange and are suspected of fraud. Every situation is shocking.
"Matchmaking Network" is a typical illegal platform for docking "gold owners" and fund-raising stock customers, involving the largest transaction amount.
Blind date network is a platform established by a company in Chongqing. This company has not obtained the qualification of relevant securities business, but uses the matchmaking network to connect with fund providers (commonly known as "gold owners", the same below) to obtain fund-raising funds and securities accounts, and uses the fund-raising warehouse system software to open trading sub-accounts for fund-raising customers, providing highly leveraged fund-raising funds for fund-raising and stock trading.
In addition to matchmaking, such illegal platforms include Shi Sheng, Yisheng, Tongsheng, Beiying, Yolanda and Guangdong Jinniu. Shenzhen Ju Niu Hui You and Shenzhen Tongshengjin Information Platform.
Due to the different operating hours of each platform, there is also a gap between the amount involved and the number of affected customers.
Chongqing's "blind date network" has the highest transaction volume, reaching 55 billion yuan, supporting more than 40 thousand customers, covering the whole country 16 provinces and cities.
The transaction volume of Shenzhen Juniu Huiyou platform reached 7 billion yuan, involving more than 4,500 fund-raising customers. In June, 2020, Shenzhen public security organs launched a network-closing operation in Shenzhen and Shanghai, which destroyed the criminal dens of this platform, controlled the people involved, and arrested the suspects 17. This case is the largest crackdown on illegal off-site fund-raising in Guangdong so far.
Different illegal fund-raising platforms provide different financing levers. The leverage ratio of many fund-raising platforms, such as Shisheng.com, Guangdong, is 5 to 10, and that of "matchmaking network" is 8 times.
There are also illegal fund-raising platforms that extend the "tentacles" to the futures market.
Operating futures requires a "threshold" for the operator's basic knowledge of futures and the balance of funds, but the OTC fund-raising platform allows people who do not have the qualifications and funds for futures trading to get involved in futures trading.
In the typical case announced by the CSRC, Nanchang Oxygen Technology Co., Ltd. did not have the qualification of relevant futures business, and solicited fund-raising customers through the company website and friends' introduction, borrowed other people's futures accounts as the main accounts, and split them into multiple virtual sub-accounts by using the software of "Zhifutong" fund-raising and warehouse-sharing system to provide futures fund-raising for customers. Therefore, customers can make futures trading without the qualification of futures trading and pay little money, and charge a handling fee much higher than that of the futures exchange to make a profit.
The above-mentioned companies involved have not obtained business qualifications and are suspected of illegal business operations. Some company platforms are not connected to the stock exchange, and customers engage in virtual transactions and are suspected of fraud.
For example, from 20 19 to 2020, Wu Mou and others jointly developed the software of fund-raising and warehouse-sharing system, built a virtual fund-raising platform such as "Ma Shengsheng", attracted the operators and agents of fund-raising platform, and attracted customers to invest in stocks on the platform by publishing high-quota and high-leverage fund-raising information through WeChat stock trading group. In fact, customers' orders to buy and sell stocks did not really enter the securities market, but were kept in the fund-raising platform, which calculated the profit and loss of customers' transactions according to the stock market, deceiving customers into thinking that they were conducting real securities transactions. The case involved more than 30 million yuan and more than 2,000 victims.
In addition, five companies, including Xi Anyimei Chen Xing Network, promote the "good start" fund-raising platform, which has high cost and many "traps". They use 10 times leverage to induce customers to open positions and charge 3‰ opening fees; When the traded stock fell by 5%, the salesman tricked the customer into making additional investment; When it falls by 7%, the platform will force the liquidation; When the stock purchased by the customer rises and sells, the platform will take 10% of the investment profit as the share. As of the time of the incident, a total of 623 people registered on the platform, involving more than 39 million yuan.
Consciously stay away from off-exchange fund-raising, and the off-exchange fund-raising contract is invalid.
The above-mentioned typical case of 10 is just the tip of the iceberg of the off-site illegal fund-raising platform.
On the evening of July 8, 2020, the Securities and Futures Commission of China, official website exposed a number of platforms illegally engaged in off-exchange fund-raising and exposed 258 platforms illegally engaged in off-exchange fund-raising and their operating institutions.
The CSRC reminded that illegal institutions or individuals created platforms such as off-exchange fund-raising websites, mobile phone apps and official WeChat accounts, claiming to provide more than 10 times of the maximum funds for stock trading, with "you buy stocks, I pay the bill", "leveraged stock trading, high income", "firm trading, low threshold" and "safe funds, quick withdrawal" as gimmicks to induce investors to participate in off-exchange fund-raising activities. Investors are requested to raise their awareness of risk prevention and consciously stay away from off-exchange fund-raising activities to avoid property losses.
The CSRC also suggested that as early as 20 19 1 1, the Supreme People's Court issued the Minutes of the National Court Civil and Commercial Trial Work Conference, which made it clear that the off-site fund-raising contract was invalid and the relevant risks and responsibilities were borne by the participants themselves.
In online adjudication documents, the number of trials involving "off-site fund-raising" reached 55 1 in 2020, 20% more than the sum of the previous two years. As of May 6 this year, there have been 80 trials involving "off-site fund-raising" in case 202 1.
The referee document network and the "off-site fund-raising" case announced by the China Securities Regulatory Commission are equally shocking.
Some illegal gangs build illegal "ecological chains" including stock recommendation websites, stock evaluation institutions and off-site fund-raising platforms. They try to confuse investors into buying, while waiting for opportunities to sell and manipulate cross-border markets.
What's more, the "financial boss" cooperated with the employer. After huge losses, the financial boss sued the employer and wanted to ask the latter for compensation in the name of loan contract disputes. After the first and second trials, the lawsuit even reached the Supreme Court, and the answer was that "off-site fund-raising contracts cannot be treated as private loans". Securities allocation has the exclusive attribute. Except for the margin financing and securities lending business carried out by securities companies and customers who have obtained margin financing and securities lending qualifications according to law, the off-exchange fund-raising contract between any other unit or individual and investors shall be deemed invalid according to relevant laws.
Editor | Yao Kun
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