Case of a new three-board transfer board scam

1. Case Introduction

In January 2023, Zhao reported to the 12386 hotline that some people claimed that a company listed on the new third board would be listed on the main board, gem or science and technology innovation board in the future. if investors buy the company's shares, they can get six to ten times the investment income after the successful transfer, and said that if the investor's own assets are insufficient, they can remit the money to an intermediary agency, which will buy it on their behalf.

2. case analysis

In order to match investors' own risk tolerance with the purchase of securities products, different market levels have set up different investor access standards. According to the announcement on the revision of the measures for the Administration of the appropriateness of Investors in the National share transfer system for small and medium-sized Enterprises (stock transfer system announcement [2021] No. 937), the average daily RMB of assets in the securities account and capital account under the name of Japanese people before the opening of the trading authority of the innovation layer and the basic layer should be above 1 million yuan and 2 million yuan respectively.

Individual investors who do not meet the requirements of appropriateness are not suitable to buy shares of companies listed on the new third board, and the security of funds transferred to other people's accounts and purchased by others on their behalf cannot be guaranteed.

3. Case Review (Guo Min, Compliance Director, Dongfang Fortune Securities Co., Ltd.)

In recent years, the "transfer scam" of the new third board is not uncommon, among which the illegal act of defrauding customer funds with "high return" as bait is more harmful. The related acts are often intertwined with illegal securities activities, market manipulation and over-the-counter capital allocation, and even involve criminal activities. In 2021, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the Opinions on Severely Cracking Down on Securities Illegal Activities in accordance with the Law, which clearly included the above-mentioned acts in the scope of the crackdown, and proposed to strengthen the punishment of major securities violations and criminal cases and law enforcement in key areas.

As market investors, they should keep their eyes open, inquire about formal securities operating institutions and securities trading places through the official websites of regulatory agencies, industry self-regulatory organizations or official channels, and constantly learn the trading rules and knowledge of various legal trading places. Securities operating institutions shall publicize the knowledge of various sectors of legal trading places and related securities business through various channels; at the same time, they shall strengthen the management of investor appropriateness and the management of the real-name account system, guide market investors to rationally participate in securities investment, and protect their legitimate rights and interests.

Case 2 Impersonating a staff member of a securities company for illegal activities

1. brief

In October 2022, A Securities Company's customer service hotline and official E-mail received complaints from investors one after another, reflecting that employees of the company were invited to join the stock exchange group and were induced to download market trading software to buy virtual coins, original shares, etc. and were charged consulting fees. After verification by the company, the above-mentioned activities were carried out by criminals posing as the company and its employees, and the software issued by investors was not the company's market trading software. Company A then provides investor risk alerts through the company's APP client and the website of the China Securities Association.

2. case analysis

According to Articles 118 and 202 of the Securities Law, Article 225 of the Criminal Law and Item (II) of the (II) of the Supreme People's Procuratorate and the Ministry of Public Security on the Standards for Prosecution of Criminal Cases under the Jurisdiction of Public Security Organs, without the approval of the CSRC, no unit or individual may carry out securities business activities in the name of a securities company. Those who illegally operate securities business or carry out securities business activities in the name of a securities company without approval will be given corresponding administrative penalties according to the seriousness of the circumstances; if they are suspected of committing a crime, they shall be investigated for criminal responsibility for the crime of illegal business operation after being determined by the public security organ or judicial organ in accordance with the law.

In this case, the criminals impersonated the staff of A securities company to engage in stock recommendation consulting activities, suspected of illegal securities activities.

3. Case Review (Shi Hongxing, Compliance Director, Zhongyuan Securities Co., Ltd.)

In recent years, illegal securities activities are highly concealed and constantly renovated, and lawbreakers have used a variety of means to impersonate legal institutions or personnel to carry out illegal activities. One is to fake the company's website and APP to induce investors to download illegal software and merge it into gold, and to induce investors to transfer money or trade through illegal links. The second is to fake celebrities and employees of the company to carry out illegal customer solicitation, stock recommendation, misleading and fraud, etc. The third is to deceive investors with "inside information" under the guise of "cooperating with XX securities dealers. Such illegal securities activities not only violate the reputation of securities companies, but also harm the interests of investors.

Investors can identify and judge whether they are legal institutions through the following ways. One is to identify the subject qualification. According to regulations, the development of securities and futures business requires the approval of the China Securities Regulatory Commission and the corresponding business qualifications. The information of legal securities and futures business institutions and their employees can be inquired through the websites of the China Securities Regulatory Commission, the China Securities Association, and the China Futures Association. The second is to identify marketing methods. Criminals often call themselves "teachers" and "stock gods", and attract investors by knowing "inside information", being able to select "dark horse stocks", and making a lot of money as long as they follow him. However, legal securities and futures operating institutions cannot have the above behavior. The third is the identification of Internet sites. Illegal securities and futures websites often use letters and numbers with no special meaning, or change or add letters and numbers on the basis of the websites of legal securities and futures institutions. The websites of legal securities and futures business institutions can be viewed through the websites of China Securities Association and China Futures Association to identify illegal securities and futures websites. The fourth is to identify the collection account number. Legal securities and futures institutions can only conduct business in the name of the company, and can only open bank accounts in the name of the company, while illegal institutions often open collection accounts in the name of individuals. If someone asks to put money into an account opened in his or her name, he or she should be decisively refused.

Case III Illegal securities investment advisory business

1. Case Introduction

In November 2022, investor W reported to the 12386 hotline, reflecting a WeChat public number published "Soaring! Earn 215000" and other articles, through public trading orders, show profits and other ways to induce investors to pay to join its so-called "high-end VIP" group, trying to cheat investors of high consulting fees. After investigation, the WeChat public number operating entity engaged in securities and futures investment consulting business has not been licensed by the China Securities Regulatory Commission.

2. case analysis

According to Article 1 of the Notice on Several Issues Concerning the Regulation of Securities Investment Consulting Business for the Public (CSRC Announcement No. 66 [2020]), any institution or individual is engaged in the business of providing analysis, prediction or advice to the public in oral, written, computer network or other forms recognized by the CSRC on the feasibility of investing in securities on the trend of the securities market and securities varieties, must first obtain the securities investment consulting business qualification certificate granted by the China Securities Regulatory Commission or be appointed by an institution that has obtained the securities investment consulting business qualification certificate granted by the China Securities Regulatory Commission and meet the relevant professional requirements.

In this case, the WeChat public number operator engaged in securities investment consulting business without the permission of the China Securities Regulatory Commission, suspected of illegal securities and futures activities.

3. Case Review (Zhang Honghao, Compliance Director, Hexin Securities Investment Consulting Co., Ltd.)

At present, WeChat, Weibo, Douyin and other online platforms have a large number of mixed securities investment consulting service information. Investors should be vigilant and pay attention to screening when receiving investor consultation or financial management services. Whether it is by actively adding contact information reserved from the media platform, or receiving unknown calls or friend applications in the name of stock recommendation, financial management, etc., investors should first verify the identity information of the other party; "The market is risky and investment needs to be cautious". Investors should not trust false propaganda such as "trading on their behalf and promising returns" and keep their money bags.

Case 4 Illegal sale of "original shares" to raise funds

1. Case Introduction

In 2022, a company sells health products to the elderly and promises to use the purchase points to exchange the company's "original shares". At the same time, it claims that the company has been approved for listing on the "Mozambique International Stock Exchange". Once the listing is successful, shareholders holding "original shares" can obtain high returns.

2. case analysis

According to Article 9 of the Securities Law, the public offering of securities must meet the conditions prescribed by laws and administrative regulations and be reported to the securities regulatory authority under the State Council or a department authorized by the State Council for registration in accordance with the law. Without being registered in accordance with the law, no unit or individual may publicly issue securities; Article 35 stipulates that the securities traded by the parties to a securities transaction in accordance with the law must be securities issued and delivered in accordance with the law. Securities not issued in accordance with the law shall not be traded. According to Article 179 of the Criminal Law, anyone who, without the approval of the relevant competent department of the state, issues stocks or corporate bonds without authorization, with a huge amount, serious consequences or other serious circumstances, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also or separately be fined not less than 1% but not more than 5% in the amount of illegally raised funds.

In this case, under the guise of listing abroad, a company issued shares to the domestic public without registration by the relevant state authorities in accordance with the law, which is suspected of constituting an unauthorized issuance of stocks, companies, and corporate bonds; inducing the public to purchase health products and receive gifts The act of "original shares" is suspected of constituting fraudulent activities.

3. Case Review (Li Yi, Compliance Director, Wanhe Securities Co., Ltd.)

At present, some activities of illegally selling "original shares" in the name of overseas listing have been on the rise. Most of them take overseas listing as a gimmick. Through the publicity of false information, they take advantage of the information asymmetry of investors' cognition of overseas capital market to induce the public to buy and sell "original shares", so as to obtain illegal benefits. The majority of investors should keep their eyes open, stay away from illegal issuance or transfer of "original shares" activities, carefully identify risks, maintain rational investment, and do not believe that illegal institutions use overseas listing as a gimmick to promote and induce the public to buy "original shares" scams, To avoid property losses. Once found cheated, should promptly report to the public security organs.