Busen Shares Reorganization Of Assets Suspected Of Fraud Case

According to the latest news, in recent days, the truth about the Busen company's asset restructuring suspected of fraud has settled, and the SFC has announced the truth and related penalties.

Hong Wah agriculture,

The case of suspected asset fraud was finally settled.

In April 22nd, the SFC made administrative penalties for 6 cases, which disclosed the administrative penalty decision for Hong Wah agriculture and Busen shares.

Because of malicious fraud in major asset reorganization and false information disclosure.

It was ordered by the SFC to make corrections and give warnings and impose a fine of 600 thousand yuan on the ceiling.

More than one responsible person was punished.

Busen shares were also punished 300 thousand yuan, the responsible person was fined.

Hong Wah agriculture half assets fictitious

In August 12, 2014, the major asset restructuring report (Draft) issued by Busen shares revealed that there were false records of the main data of Hong Wah's agriculture, which was published during the period from 2011 to April 30, 2014 (referred to as the "reporting period").

Hong Wah agriculture had planned to borrow $4 billion 200 million from Busen.

On the evening of February 29, 2016, Busen shares announcement received the "administrative penalty decision" of the SFC.

During the reporting period, Hong Wah's agriculture increased 200 million yuan, 340 million yuan, 470 million yuan and 500 million yuan respectively, accounting for about 50% of its total assets during the reporting period.

It means that half of Hong Wah's agriculture is fictitious.

In addition, Hong Wah agriculture still has the situation of inflated revenue.

During the reporting period, Hong Wah's gross agricultural revenue increased to 600 million yuan.

The inflated revenue accounts for 35% to 44% of the current period's disclosure.

In September 15, 2014, the Beijing News published "Hong Wah agriculture 130 thousand Mu" land pfer "survey, reporters visited many places in Guangxi, field investigation found that Hong Wah Agriculture published" 130 thousand acres of land pfer "data is not true, there is exaggerated suspicion.

On October 27, 2014, Busen announced that the SFC requested the company to make written explanations and explanations on related issues and submit written reply within 30 working days.

A month later, Busen shares announced the termination of the reorganization of assets based on the differences between Busen group and Hong Wah agriculture and shareholders.

The securities and Futures Commission said Busen shares disclosed a false record in the process of major asset reorganization with Hong Wah, violating the relevant securities laws and regulations.

The SFC ordered Busen to make corrections, give a warning, impose a fine of 300 thousand yuan, and give a warning to Wang Jianjun, chairman of Busen shares, and Dong Fan hung Lei, and impose a fine of 50 thousand yuan and 30 thousand yuan respectively.

Warnings were given to the remaining 7 directors of Busen stock.

Yesterday evening, the announcement of Busen shares continued to be suspended. It is expected that the relevant documents of the major asset reorganization will be disclosed later than July 1, 2016 and applicant company shares will resume trading.

600 thousand yuan is already "top penalty".

Compared with the four yuan in the past 1 billion 510 million years, the assets and operating income of 1 billion 510 million yuan, 600 million yuan, the Commission's 600 thousand yuan fine for Hong Wah's agriculture is considered "too light".

"600 thousand yuan is already the" Securities Law "for the false statement of the top penalty.

Compared with the amount of money involved in misrepresentation, the cost of such a punishment is almost zero.

Liu Guohua, director of the well-known securities rights lawyer and Guangdong Ben Ben law firm, said.

It is said that for many years, the penalties for false statements in the securities law are all the same. The company's top penalty is 600 thousand yuan, and the relevant personnel's top penalty is 300 thousand yuan. An illegal listed company usually has a cumulative penalty of up to about one million yuan, compared with the amount of false statement.

Therefore, when modifying the securities law, we need to increase penalties for false statements.

According to media reports earlier, in the past three years, a total of 35 companies involved in financial fraud and administrative penalties by the SFC, of which 32 companies were fined not more than 600 thousand yuan.