Board Chairman Kairui Ambushed His Own Stock, And Then Released A Favorable Announcement To Lift The Share Price, Fined 500 Million + Lifelong Ban

Unscrupulous! The chairman borrowed 33 Homs sub accounts to ambush his own stock in advance, and then released the favorable news to pull up the share price! The final fine and forfeiture exceeded 500 million + lifelong ban

Justice is sometimes late, but never absent. After more than five years, another case of market manipulation was exposed.

On the evening of September 8, the CSRC's official website posted a written decision on administrative punishment and market ban against Wu lianmo, the former actual controller and chairman of carread (now st Carey). From August 2014 to June 2015, Wu lianmo borrowed other people's accounts to hold and trade kairuide shares, and controlled listed companies to release information to manipulate stock prices. The CSRC imposed a fine of "five for every one" and a fine of 600000 yuan for illegal trust, with a total fine of 513 million yuan. In addition, Wu lianmo was banned from the market for life.

From the perspective of Wu lianmo's manipulation, since market manipulation took place in 2014-2015, it was the time when Homs system became popular in the market. It was through Xianyan, a former capital magnate, that Wu lianmo allocated 1.25 billion yuan and obtained a large number of Homs sub accounts and personal accounts, thus opening the process of manipulating karead.

As a listed company with deteriorating business conditions and serious losses, even in the big bull market in 2015, the rapid rise in the share price of karead is not normal. Under Wu lianmo's control, Kairui released a series of favorable information concerning the development of lottery business, fund business and Internet Finance and other new topics. Since August 2014, Kairui's share price soared all the way, and during the period, the share price was as high as 43.50 yuan. It has been proved that Kairui's stock price has been manipulated in the end.

Before the implementation of the sky high price punishment, Wu lianmo, the fifth quarter industry and kairuide have been issued with fines by the CSRC for many times. After that, the market will continue to observe how the once well-known Zhuang stock will develop.

33 Homs sub accounts loaned by "capital circle of friends"

There are many capital myths in the A-share market, but judging from the market manipulation cases cracked by the CSRC in the past few years, the "stock gods" often rely on asymmetric information and dominant position to manipulate the market. This time, Wu lianmo, the former real controller and chairman of Kairui, was severely punished by the CSRC, no exception.

From January 2012 to December 2017, Mr. Wu was the actual controller of the company. During the case (August 2014 to June 2015), Wu lianmo held 30 million kaireid shares, accounting for 17.05% of the total share capital, through the fifth quarter industry controlled by individuals; after 8.5 million shares were reduced by block trading in June 2015, he held 21.5 million shares, accounting for 12.22% of the total equity.

Therefore, the company does not need to open its own stock account. Before the stock market crash in 2015, the Homs sub account was popular in the market, and Wu lianmo also adopted this method. According to the investigation of the CSRC, Wu lianmo borrowed a total of 33 Homs sub accounts, 2 natural person accounts and 1 institutional account to buy and sell kaireid shares.

Capital matching, such as the stock account. What is worth noting is that the party that lent the account and provided funds to Wu lianmo is also a "well-known one". During the period of financing, Wu Xianlun, the borrower, was used to supervise the stock trading case of Shanghai Duolun Industrial Co., Ltd.

It is not difficult to find that "xianmou" in the case is Xianyan, a famous and jailed capital market "Laolai". As the original actual controller and chairman of pitoupi, Xianyan received the "biggest ticket in history" of 3.47 billion yuan for manipulating pitoupi in 2017, and then suffered regulatory punishment for the farce such as the "wonderful flower motion" launched by Huiqiu technology. In September 2019, the first Shanghai Intermediate People's court imposed a five-year imprisonment and a fine of 11.8 million yuan on Xianyan's crime of damaging the interests of listed companies by breaking faith and manipulating the securities market.

As for the contact between Wu lianmo and Xianyan, the market has long been expected. In August 2016, when replying to the regulatory inquiry, kaireid disclosed that Wu lianmo's increase in shareholding was a "curve increase" of carread, and Rao Yuxiu, the increasing shareholder, had jointly held the equity of an investment company with Xianyan, belonging to a "circle of capital friends".

In addition to lending 33 Homs sub accounts, Xianyan provided Wu lianmo with his own personal account and elder brother's personal account. With generous donations, Xianyan provided Wu lianmo with 1.25 billion yuan of funds and account use.

High price flight before stock market disaster

From the period of the case, Wu lianmo borrowed the account to buy and sell kairuide and manipulated the stock price in many ways, which was the eve of the stock disaster in 2015. Wu lianmo released a series of good news after building a position at a low price in the early stage, which pushed up the stock price and chose an opportunity to ship at a high price in the bull market before the stock disaster. This is the standard routine of market manipulators.

From August to September 2014, in less than two months, Wu lianmo intensively bought and sold Kairui in 37 of 39 trading days, during which he bought 10.054 million shares with a purchase amount of 107 million yuan. As of September 29, 2014, Wu lianmo's control account group held 8.5711 million shares of kaireid, accounting for 4.87% of the total share capital.

After the establishment of the warehouse, Wu lianmo began to control the listed companies to release all kinds of favorable information, and cooperated with the secondary market transactions to raise the share price, including entering the lottery industry, investing in fishery, investment fund companies, etc. For example, as a traditional coal company, Reid has been engaged in the transformation of coal industry.

However, almost all of the so-called "transformation" of karead failed. For example, from 2014 to may 2015, Kairui successively announced the acquisition of 100% equity of Hehe Yongxing, 10% of Zhongyue technology, 10% of Huaxia Baixin and 51% of baibaocai. According to the regulatory investigation, the above subsidiaries either did not carry out corresponding lottery business or did not promote the subsequent acquisition, and the transaction was terminated, all of which were false "signal bombs".

Similarly, in November 2014, carread announced the establishment of a "karead fund" for foreign investment to engage in equity investment. However, according to the investigation by the regulatory authorities, after its establishment, Kairui fund did not engage in any fund business, but engaged in over-the-counter capital allocation business. In December 2015, karead transferred out 100% equity of the fund at the price of 1 yuan.

In addition to releasing false news to drive up the stock price, Wu lianmo used the account group to conduct continuous trading and trading between the accounts under his actual control, and the trading volume of several trading days ranked among the top five in the market. In March 2015, the account group held 13.839 million shares, accounting for 7.86% of the total equity.

The regulatory authorities pointed out that during the case, karead's business situation continued to deteriorate and suffered serious losses. However, due to Wu lianmo's control, carred released a series of favorable information concerning the development of lottery business, fund business and Internet Finance and other new topics. Through continuous trading and trading between accounts under their actual control, the stock price of "karead" was raised.

During the same period of 2015, the Reid stock price deviated significantly from the stock price rise of RMB 210.25% in the same period of 2015 to 24.25% of the total stock price rise in April 2014. During this period, kairuide's share price had reached the historical highest price of 43.50 yuan (June 8, 2015).

From March to June 2015, the account group began to ship goods in succession, and Wu lianmo continued to release good news during the reduction period to maintain the stock price. For example, in May 2015, cadre announced that it would increase capital to hold 51% equity of Dongfang Caiyun (P2P Yindou network operating company, which has been exploded) through its subsidiary, and enter the Internet industry market. However, the relevant agreement was signed in early April of that year, and the subsequent agreement was terminated in February 2016.

Finally, the regulatory investigation confirmed that Wu lianmo's control account group purchased 49.4132 million shares (including block trading) and sold 38.0711 million shares. According to the statistics of the exchange, Wu lianmo made a total profit of 85.3219 million yuan.

The CSRC pointed out that Wu lianmo controlled Kairui to issue a series of favorable announcements, and used the advantages of account group to concentrate funds, hold shares and conduct transactions between accounts under his actual control to cooperate with the behavior of raising kairuide's share price, which constituted the behavior of "manipulating the securities market" as mentioned in the securities law. In addition, Wu lianmo failed to report and announce its shareholding change information in accordance with the provisions, which constituted the behavior that "other information disclosure obligors failed to submit relevant reports in accordance with the provisions".

Based on this, China Securities Regulatory Commission (CSRC) imposed "Five Penalties for every one" on Wu lianmo's behavior of manipulating the market, that is, confiscating 85.3219 million yuan of illegal income and imposing a fine of 427 million yuan; warning the illegal behavior of information disclosure and imposing a fine of 600000 yuan; and the total amount of fine was as high as 513 million yuan.

In addition, as the actual controller of the listed company, Wu lianmo controlled the disclosure of relevant information by using his own identity, manipulated the price of kairuide, and made huge profits, which has seriously disturbed the order of the securities market and seriously violated the law. In this regard, the CSRC decided to ban Wu lianmo from the market for life.

He was punished many times

Justice is sometimes late, but never absent. As for kaireid, who was once well-known in the market, the person behind it was finally exposed as the chairman of his own company, which is rather deplorable.

Looking back on the past, kairuide was formerly a German cotton stock controlled by the state-owned enterprise Shandong Demian group. After listing in 2006, German cotton began to lose money in the second year, and planned to "sell the shell" in the third year, but "met with bad luck" many times. In 2001, Wu lianmo acquired st de cotton through the fifth quarter industrial agreement, and changed the company's name to kaireid.

Under Wu lianmo's capital ambition, kaireid also sought transformation for many times, but from the results, most of the transformation plans were in vain to cooperate with Zhuangzi. After making a lot of money, in March 2017, kairuide announced that Wu lianmo, the chairman of the board, applied to resign from all his positions in the company for personal reasons. In July 2017, the actual controller of karead was changed from Wu lianmo to the new chairman Zhang Peifeng and four other natural persons.

At the same time, the violations of laws and regulations of Wu lianmo, the fifth quarter industry and kairuide have been paid close attention to by the supervision. According to the announcement information of kairuide, at the end of October 2016, kaireid was put on file for investigation by the CSRC. Since then, at the end of December 2016, kairuide announced that the company had received the notice of Wu lianmo, the chairman of the board of directors, and the CSRC issued the investigation notice to him on December 27, 2016. In June 2017, China Securities Regulatory Commission once again filed a case with Wu lianmo in the fifth quarter.

Since then, with the deepening of the regulatory investigation, the relevant results have also come to light. In June 2019, due to the false records of kairuide's information that the company reduced 8.5 million shares through the bulk platform in the fifth quarter, the company was fined 300000 yuan as the information disclosure obligor in the fifth quarter, and Wu lianmo, as the controlling shareholder of the industry in the fifth quarter, was fined 400000 yuan.

In October 2019, the CSRC imposed a ceiling penalty of 600000 yuan on the company for failing to disclose two major lawsuits in accordance with the regulations, and imposed a fine of 300000 yuan on Wu lianmo, and a fine of 30000-100000 yuan on other directors, supervisors and senior executives respectively.

Since then, in June this year, the SFC again disclosed the results of its investigation on karead. Because it did not disclose the sale of subsidiary's equity as a related party transaction, and did not disclose the non operating capital transactions with the related parties according to the regulations, karead once again constituted a letter fraud. In addition to the 300000 yuan penalty imposed on karead, Wu lianmo himself was fined 600000 yuan.

It is worth mentioning that after the withdrawal of Wu lianmo, karead's experience of "being in trouble" continues. In 2017, after Zhang Peifeng became the owner of Kairui, he personally participated in the b-round financing of P2P company aiqianbang and became the chairman of aiqianbang. Kairui also began to fall into P2P business. After the explosion of P2P, the end can be imagined. In July 2018, Zhang Peifeng was investigated by the China Securities Regulatory Commission (CSRC). He was subjected to residential surveillance at designated residence for suspected market manipulation. The follow-up results have not yet been released.