Wang Jianjun, chairman of the National People’s Congress Shenzhen Stock Exchange: fraudulent issuance is the highest sentence

Wang Jianjun, chairman of the National People’s Congress Shenzhen Stock Exchange: fraudulent issuance is the highest sentence
On April 27, 2020, the Central Shenzhen Reform Commission passed the overall implementation plan for the pilot registration system of the GEM, and the registration system reform took another step forward.In fact, previously, the State Council’s Financial Committee meeting had “zero tolerance” for the capital market fraud three times in a row three times in a row, resolutely safeguarding the interests of investors.Sauna, Yewang learned that the NPC deputy and the chairman of the Shenzhen Stock Exchange Wang Jianjun proposed at the two sessions to modify the criminal law, replace the fraudulent issuance crime with a “financial fraud fraud”, and raise the maximum penalty to life imprisonment and increase the penalty, To broaden the scope of the criminal law and regulations, and clarify the “critical minority” criminal responsibility.Obviously, Wang Jianjun ‘s expectations for three consecutive years are all related to the rapid revision of the criminal law to combat fraudulent issuance.”The implementation of preliminary market-based access to the securities issuance registration system must reduce the use of ‘big sticks’ in fraudulent issuance and other illegal acts, otherwise it will affect reform progress and the reform process.”Wang Jianjun said.He said that “civil execution” has a three-pronged approach, three-dimensional reconstruction and reorganization of the issue responsibility investigation system, a comprehensive increase in illegal and criminal costs, escort for the reform of the registration system, and tamping the rule of law for the healthy development of the capital market.In the current criminal law, the crime of fraudulent issuance has been replaced with the crime of “obstructing management levels against companies and enterprises”. The maximum sentence is only 5 years.Based on the crime of fund-raising fraud, according to the 2011 Supreme Court’s Interpretations on Several Issues Concerning the Specific Application of Laws in the Trial of Criminal Cases of Illegal Fund-raising, the crime of fraudulent issuance and the crime of fund-raising fraud are both illegal fund-raising crimes, but they are also classified as “financial”Fraud crime” chapter, and can be sentenced to more than 10 years in prison or even life.From a specific case, in 2016, the Shangqiu City Intermediate People’s Court sentenced the defendant to life imprisonment and confiscated all personal property in a fund-raising fraud fraud case. The amount of funds raised in this case was 1.9 trillion, causing 517 fund-raising participants to fail to redeem the payment of more than 90 million yuan.Under the ranking, Wanfusheng Branch raised funds through fraudulent issuance.2.5 billion, involving 2.70,000 investors, the main responsible person was only sentenced to 3 years and 6 months; Xintai Electric fraudulently issued raised funds up to 2.5.7 billion yuan, involving 2.For 40,000 investors, the term of imprisonment of the principal is only 3 years.Consistently, the transformation of the capital market has developed rapidly, and fraud and counterfeiting cases have also been increasing year by year. It has become a consensus among all parties to comprehensively increase the cost of illegality.In 2019, once white horse stocks Kantxin and Kangmei Pharmaceuticals were successively involved in suspected huge financial fraud; in April 2020, Ruixing Coffee was exposed to allegedly inflated sales revenue, the market was in an uproar, and investors were deeply reflected.The most recent 25th, 26th and 28th meetings of the State Council’s Finance Committee made continuous demands on capital market work, repeated many times to resolutely fight against various frauds and frauds, and resolutely and thoroughly investigated fraudulent companies and individuals.deal with.Criminal accountability is an important part of severe punishment and heavy punishment, and it is necessary to change according to need, change according to the situation, and play a role.Wang Jianjun said that more importantly, the securities issuance registration system has been written into the new securities law as a basic system of the capital market.On the basis of the first trial of the Science and Technology Board and the GEM, the registration system reform will be promoted to the entire market, and there is an urgent need to increase the supplement of the criminal law system.The implementation of preliminary market-based access for the registration system has great restructuring benefits to facilitate corporate financing and increase market activity. However, if the intensity of fraudulent issuance is insufficient, it may lead to an increase in the number of such cases, affecting reform progress and gradually reforming the process.Affect the ability of the capital market to serve the real economy.At the same time, the new securities law has comprehensively improved the administrative and civil liability for fraudulent issuance, including increasing the amount of administrative fines and confiscated funds, setting up “responsibility order repurchase”, “advance compensation”, and the securities class action system.Shortcomings are urgently needed.In addition, the new securities law has also broadened the scope of securities varieties, and also requires the criminal law to be supplemented and improved.Regarding this, Wang Jianjun proposed an overview of amending the criminal law, suggesting that the fraudulent issuance crime should be replaced by “financial fraud fraud”, comprehensively increase the sentence and fines, broaden the scope of the crime regulation, and clarify the “critical minority” criminal responsibility to make the crimeThe types of crimes, the allocation of penalties and the harm to society are matched, and a sound accountability system of three-pronged and simultaneous advancement of a “civil execution” is established to protect the implementation of the registration system.In fact, Wang Jianjun believes that there are four problems in the relevant provisions of the current Criminal Law Article 160 “The Crime of Fraudulent Issuance of Stocks and Bonds”: First, the classification of the crime is not accurate enough.The second is that the sentence for this crime is set too low.The third is the narrow scope of regulation of the crime.Fourth, it is recommended to strengthen the criminal crackdown on “key minorities”.In this regard, Wang Jianjun proposed to change the “crime of issuing stocks and bonds fraud” to “crime of issuing securities and bonds fraudulently.”At the same time, two additional periods of imprisonment are added. Those with serious circumstances are sentenced to more than 5 years and less than 10 years in prison; those with particularly serious circumstances are sentenced to more than 10 years in prison or life imprisonment.Wang Jianjun’s recommendations on this article also include: strengthening accountability for “key minorities”, a separate set of controlling shareholders, an organization of actual controllers, and criminal responsibility for instigating forced corruption.Increase the amount of fines from “the amount of illegally raised funds is more than 1% and less than 5%” to “the amount of illegally raised funds is more than 20% and less than double”.The formulation of the provisions was improved, and the “corporate bond issuance method” was changed to “corporate bond issuance method and other securities issuance documents” to maintain the connection with the new securities law.Sauna, Ye Wang Zhang Shuxin editor Xu Chao proofreading Li Shihui