Submitting false documents This institution has its business qualification revoked and bribed the former chairman of a trust company. Interim Measures | Assets | Document

According to an administrative penalty decision recently updated and disclosed by the China Securities Regulatory Commission, the commission has conducted an investigation and trial into the violation of securities laws and regulations by Northern Asset Management Co., Ltd. and has decided to issue a warning to Northern Asset Management Co., Ltd; Wang Xing, the then legal representative, chairman, and general manager of Northern Asset Management, was given a warning and fined 30000 yuan; Revoke the business qualification of Northern Asset Management Co., Ltd.

Provide pictures as a convenient way to hold equity on behalf of others

Conveying undue benefits to public officials

According to the administrative penalty decision, from 2009 to 2014, Northern Asset utilized Gao Moubo's position as the Party Secretary and Chairman of Jilin Trust to facilitate project cooperation. He collected "consulting fees" from Jilin Trust and provided Gao Moubo with kickbacks as agreed in advance. Among them, in August 2013, Beibu Asset established Tianzhi Beibu Asset Management Co., Ltd. in a joint venture with other companies. Beibu Asset's contribution included 5 million yuan invested by Dai Gao Moubo to purchase Tianzhi Beibu's equity, which was held by Beibu Asset on behalf of Gao Moubo.

On June 3, 2019, Wang Xing was criminally detained on suspicion of committing a crime and arrested on June 17, 2019. On December 17, 2019, the People's Procuratorate of Dunhua City, Jilin Province, filed a public prosecution against Beibu Asset and Wang Xing. On December 4, 2021, the People's Court of Dunhua City, Jilin Province issued a criminal judgment No. Ji2403 Xingchu 357, which determined that the assets in the northern region were seeking illegitimate benefits. Wang Xing, the direct person in charge, bribed the company on behalf of the company, and the circumstances were serious, constituting the crime of bribery by the unit.

Submit documents and materials

There are false statements or significant omissions

The documents and materials submitted by Northern Assets to the securities regulatory authorities contain false statements or significant omissions.

From January 2014 to December 2021, Northern Assets submitted monthly regulatory reports for securities investment consulting firms from December 2013 to November 2021. Northern assets are accounted for in the "Long term Equity Investment" column of the "Balance Sheet" of this report based on their holdings of Tianzhi North equity, without excluding the Tianzhi North equity held by Dai Gaomoubo.

On July 29, 2021, Northern Asset Management Co., Ltd. submitted a self inspection report to the Beijing Securities Regulatory Bureau in accordance with the notice. In the self inspection report, Northern Asset Management did not truthfully report on Dai Gao's ownership of shares in Tianzhi North, and was prosecuted by the procuratorial organs for suspected unit crimes.

On January 26, 2022, Northern Asset Management submitted audit reports, financial statements, and other materials for the years 2019 and 2020 to the Beijing Securities Regulatory Bureau in accordance with its requirements. In the financial statements and notes prepared by Northern Asset Management, Northern Asset Management stated that its initial investment cost in Tianzhi North was 49 million yuan, with a 49% shareholding ratio, which is inconsistent with the actual situation of Northern Asset Management's holding of Tianzhi North equity on behalf of Gao Moubo; It is claimed that there are no pending lawsuits that should be disclosed, which is inconsistent with the actual situation of Northern Asset being prosecuted by the procuratorial organs for suspected unit crimes.

The China Securities Regulatory Commission (CSRC) believes that the transfer of undue benefits to public officials through the provision of equity holding convenience by Northern Asset Management violates the provisions of Article 9, Paragraph 1, Item 1 of the Regulations on the Integrity of Securities and Futures Operating Institutions and Their Staff, and constitutes an illegal act as stipulated in Article 20 of the 2018 Regulations on the Integrity of Employment.

Wang Xing, as the supervisor directly responsible for the transfer of improper benefits from Northern Assets to public officials, bears management responsibility for the violation of the 2018 Clean Industry Regulations by Northern Assets. He violates Article 21 of the 2018 Clean Industry Regulations and constitutes an illegal act as stipulated in Article 20 of the 2018 Clean Industry Regulations.

The documents and materials submitted by Northern Assets to the securities regulatory authorities contain false statements or significant omissions, with a long illegal time span. The content of false statements or significant omissions involves criminal offenses, and the circumstances are serious, suspected of constituting the illegal behavior stipulated in Article 33, Paragraph 1 of the Interim Measures for the Administration of Securities and Futures Investment Consulting.

Wang Xing bribed on behalf of the company

During the hearing, Northern Asset raised the following statement and defense: There has never been an equity holding relationship between Northern Asset and Gao Moubo from the beginning, and the so-called equity holding is not established; There are no subjective intentional false statements or significant omissions in the documents and materials submitted by Northern Asset Management, nor are there any situations of evading information disclosure obligations; Northern assets make social contributions, etc. Northern assets request lighter or mitigated penalties.

Wang Xing presents the following statement and defense opinions, including: Wang Xing has a deep understanding of his mistake, actively eliminated and made every effort to reduce the possible harmful consequences caused by his illegal behavior; Maintain a positive attitude and actively cooperate with the investigation; Make contributions to social welfare and the development of the securities industry. Wang Xing requests a lighter punishment.

After review, the China Securities Regulatory Commission believes that:

Firstly, there is a practice of providing equity holding convenience for Gao Moubo in northern assets. The criminal judgments Ji 2403, Xing Chu 357, and Ji Xing Zhong 133 have identified the fact that the Northern Assets are held by Gao Moubo on behalf of the Tianzhi Northern Equity, and have determined that the 5 million yuan used to purchase equity is part of the bribery money that Northern Assets paid to Gao Moubo. It is also clear that Wang Xing is bribing on behalf of the company. The relevant facts are clear and the evidence is sufficient to determine. The opinions raised by the defense cannot overturn the objective fact that Northern Asset provided equity holding convenience for Gao Moubo, and will not be adopted.

Secondly, there are false statements or significant omissions in the documents and materials submitted by Northern Asset Management, and the circumstances are serious. Northern Asset Management has violated Article 33 (1) of the Interim Measures by failing to truthfully report on behalf of Gao Moubo's holdings of shares in Tianzhi North in the documents and materials submitted to the securities regulatory authorities, and being prosecuted by the procuratorial organs for suspected unit crimes. Among them, the monthly regulatory reports of securities investment consulting institutions have not been truthfully reported for several years, and the content not truthfully reported involves criminal offenses, which is indeed a serious offense. The specific opinions raised by the defendant, such as the lack of knowledge of the handling personnel, disclosure of disciplinary fees, and active cooperation in the investigation, cannot be reasonable reasons for false statements or major omissions in the case, and shall not be adopted.

Thirdly, this case has fully considered the illegal facts and circumstances of the parties involved, applied the law correctly, and the amount of punishment is not inappropriate. The other cases referred to by the defense have significant differences from the facts of this case, and cannot be simply analogized in terms of punishment. The lighter or mitigated punishment advocated by the defendant does not comply with the relevant provisions of Article 32 of the Administrative Penalty Law and is not accepted.

In summary, the China Securities Regulatory Commission will not accept the statements and defenses of the parties involved.

Based on the facts, nature, circumstances, and degree of social harm of the illegal behavior of the parties involved, the China Securities Regulatory Commission ultimately decides:

According to Article 20 of the 2018 Clean and Honest Employment Regulations, Northern Asset Management Co., Ltd. shall be issued a warning for the act of providing equity holding convenience to public officials to transfer unfair benefits; Wang Xing was given a warning and fined 30000 yuan.

According to the provisions of Article 33 (1) of the Interim Measures, if there are false statements or significant omissions in the documents and materials submitted by Northern Asset Management Co., Ltd. to the securities regulatory authorities, the business qualification of Northern Asset Management Co., Ltd. shall be revoked.

The market entry ban decision released by the China Securities Regulatory Commission on the same day showed that Wang Xing violated Article 21 of the 2018 Clean and Honest Employment Regulations, and the circumstances were particularly serious. He was found to have committed a crime by the effective judicial judgment of the People's Court. In accordance with Article 221 (1) of the Securities Law, Article 3 (3), Article 7 (1) (1), Article 8, and Article 22 (2) of the 2018 Clean and Honest Employment Regulations, the China Securities Regulatory Commission has decided to take lifelong market entry ban measures against Wang Xing.

From the date of the announcement of the decision by the China Securities Regulatory Commission, during the period of prohibition, except for not continuing to engage in securities business, securities service business, or serving as a director, supervisor, or senior manager of the original securities issuer in the original institution, it is also not allowed to engage in securities business, securities service business, or serve as a director, supervisor, or senior manager of other securities issuers in any other institution.