The Supreme People's Procuratorate Releases Guiding Cases to Assist in Preventing and Resolving Financial Risks Fund | Case | The Supreme People's Procuratorate
CCTV News: The Supreme People's Procuratorate recently released the 44th batch of guiding cases, which focus on cracking down on new types of financial crimes, punishing black and gray industry chaos in financial crimes, and better helping to prevent and resolve financial risks.
There are a total of three guiding cases released this time, namely: the illegal fundraising case of Zhang Yeqiang and others, the currency forgery case of Guo Siji, Xu Weilun and others, and the illegal business operation case of Sun Xudong. Among them, the illegal fundraising case involving Zhang Yeqiang and others is a new type of criminal case involving private equity funds, which has guiding significance for correctly distinguishing between legitimate private equity and illegal fundraising.
The defendant Zhang Yeqiang and others obtained the qualifications of private equity and private securities investment fund managers in the name of a Guoying series fund management company that they actually control. Later, they used their operating projects as investment targets for issuing private equity funds, and used methods such as telephone contact, WeChat promotion, and distribution of promotional materials to publicly publicize false information, exaggerating the project company's business scale and investment value, promising to give returns ranging from 7.5% to 14% annually, and other methods to deceive investors into trusting them. They also issued and sold 133 private equity funds, raising more than RMB 7.681 billion.
The procuratorial organs believe that Zhang Yeqiang and others violated the management regulations that private equity funds are not allowed to promote to the public or promise that funds will not be lost. They knew that the profitability of their business activities did not have the realistic possibility of paying principal and interest, but still absorbed funds on a large scale from the public and achieved repayment of principal and interest through fundraising, resulting in the inability to return the raised funds, constituting an illegal fundraising crime.
Through this case, it is hoped that investors will pay high attention to the risks of illegal and criminal activities in the private equity fund field, and improve their ability to identify and prevent them. Private equity fund practitioners should abide by the law and operate with integrity, issue and sell private equity funds in accordance with laws and regulations, and jointly maintain the healthy development of multi-level capital markets.
