Jilin "Haitian" illegal fund-raising case trial direct hit

$1.887 billion-the record of the opening of the illegal fund-raising case has also been updated this year.　　Jilin Haitian Industrial Co., Ltd. (hereinafter referred to as Jilin Haitian) illegal fund-raising 1.887 billion yuan case before the Jilin Intermediate People's Court trial.　　Compared with the Jilin Haitian case, April 16, the first trial of Zhejiang "Wu Ying case" suspected to raise money fraud amount of nearly 390 million yuan, April 9 final ruling in Inner Mongolia "Wanli afforestation" case involved in the amount of 1.279 billion yuan-have become history. At the trial on May 11, about 80 galleries were fully seated.　　9 o'clock in the morning the trial began, including the first defendant, Wang Hitian, 23 accused outside wearing a "Jilin Guard" Orange Horse folder livery into the courtroom. On the afternoon of 12th, the trial entered the testimony and the court debate stage.　　The court was not pronounced until 14th, when the present newspaper was on deadline.　　The indictment of the Jilin people's Procuratorate shows that the Haitian company to invest in "tert-12 carbon mercaptan" production projects have high profits, high returns for the name of fund-raising fraud activities, should be the crime of fund-raising fraud, illegal absorption of public deposits to the accused Wang Hitian and other 24 accused of criminal responsibility. Wang Hitian said in the trial, if the Haitian company "tert-12 Mercaptan" Project can continue production, he believes that within 10 years can pay off investors investment money.　　The trial said that the Government supports the development of private enterprises, but also support the "tert-12 carbon mercaptan" project, but does not support Haitian companies to illegally absorb public deposits in the form of private fund-raising.　　The session will last until May 15 for a period of 5 days.　　Fundraising "Four music" according to Xinhua news agency, Jilin Province Public Security Bureau reported that the case involved illegal fund-raising amount to 1.887 billion yuan, more than 15,000 families unfortunately involved in fund-raising people directly economic losses of nearly 800 million yuan. The first defendant Wang Hitian 53 years old, Jilin person, college culture. March 1999 was established in Jilin Haitian Industrial Co., Ltd., as chairman.　　December 28, 2006, Wang Hitian was arrested on suspicion of illegally absorbing public deposits by Jilin Public Security Bureau.　　According to the Jilin prosecutor's office in April 2009, the indictment of the defendant, Wang Hitian in December 2000 by others learned that Jilin Chemical College has "tert-12 carbon mercaptan" project, the price of 900,000 yuan with the Jilin Chemical Institute signed a "tert-12 carbon mercaptan Production Technology" transfer agreement. The indictment shows that, due to lack of funds, Wang Hitian with the accused Shangkai (Jilin Haitian Chairman Assistant, Investment office Manager), Chen Wenli (Jilin Haitian Investment office Manager) research has developed a private fund-raising program, three months for a week, interest rate of 18%, agency fees (paid to the cost of the referral) 12%.　　From December 17, 2002 to February 27, 2003 the illegal absorption of public deposits 44 people, the total absorption of deposits of more than 2.989 million yuan. Wang Hitian in the trial to argue that the reason for private fund-raising, because the company investment and bank loans have not succeeded, was forced to self-financing. Jilin police have two times, this kind of financing scheme is suspectedIllegal, Haitian company in February 2003 automatically suspend execution, repaying funds.　　Also in March 2003, the Jilin Municipal Public Security Bureau on the accused Wang Hitian suspected illegal absorption of public deposits for investigation, the May, the king was released on bail pending trial. Since then, the Haitian company to change the financing strategy, using the so-called "enterprise internal expansion of capital" mode: by the friends and relatives of the company's shareholders as investors, and the company's shareholders (shareholders from 7 to 48 people) signed a letter, by the shareholders in the name of increased capital investment in the Haitian, the Haitian issued the name of the shareholders,　　The name of the investor and the amount of investment in the sea-day internal staff stock receipts, Haitian to investors pay 15% per annum interest, shareholders as the introduction of the agency to obtain 7-12%.　　Yixianrong, a researcher at the Financial Institute of the Chinese Academy of Social Sciences, told our correspondent that this strategy is a way of doing something that is essentially still a private fund-raising activity.　　The indictment said that the accused Wang Hitian, Shangkai, Chi Youzhi, Chen Wenli for the purpose of illegal possession, from March 2003 to November 2006, in Jilin Province in the spring, Jilin, Yanji and other seven cities, Dalian in Liaoning, and Tianjin City, the total fund-raising fraud 35,000 people, fund-raising fraud 860 million yuan.　　According to the information shown in the indictment, the total amount of deposits before and after 23 defendants was about 1.357 billion yuan. According to the indictment, Wang Hitian in order to facilitate the crime of fund-raising fraud, but also in 2005, 2006 in Zhengzhou (Henan Province property Rights Trading center), Shenzhen (Shenzhen International High-tech Property Exchange center) have been approved to issue a total of 30.5 million shares of internal property rights, together with the accused Shangkai, Chi Youzhi,　　Chen Wenli violation of the provisions of the OTC trade, the production of stock ownership certificate, so that the masses mistaken for the original shares, the sale of 94.7 million shares of stock.　　Jilin City Public Security Bureau by investigation Detachment investigators Feng Jianwei previously told Xinhua news agency, only to produce a stake, Haitian company that is owed shareholders about 300 million yuan, Haitian company is simply unable to repay the fund-raising funds.　　The judge said in court that the funding was much higher than the actual value of the Haitian company's assets, the Haitian has in fact sold all of its own, and investors to buy equity certificates, in fact, become a Haitian company's shareholders.　　That means the Haitian company is insolvent, and the judges say these Haitian investors are in an awkward position to "owe their own money". According to the indictment, Haitian company also without the approval of the State Ministry of Commerce, the SFC and the foreign exchange administration, in the United States Nasdaq OTCBB (OTC Securities Trading Market Bulletin board) plate operation "Buy shell" listing, deceive the masses.　　Wang Hitian in court to argue, in his arrest only learned, Haitian company in OTCBB listed success, so there is no deception. Not put into production of "tert-12 carbon mercaptan" "tert-12 carbon mercaptan" project of the so-called lofty future, is the Haitian company to attract private fund-raising key.　　But it was this project that was not actually put into operation until the law enforcement agencies took action. In order to implement this project, Haitian company in 2004December investment set up Jilin Xinlong Chemical Co., Ltd. (hereinafter, Xinlong Chemical), registered capital of 49.47 million yuan. May 12, located at 9th Jiujiang Street, Longtan Economic development zone, Jilin Province, the gate has been sealed, the front door has not seen anyone on duty, only office buildings, factories and chimneys are still standing.　　The crowd near the plant said that after the Xinlong chemical plant has been recruiting hundreds of people, and many for migrant workers.　　The indictment shows that after the incident, the public security organs seized Xinlong chemical plant, land, machinery and equipment is now worth more than 51.622 million yuan. "Tert 12 carbon mercaptan" referred to as TDMM, belong to fine chemical products, mainly used in synthetic rubber, synthetic resin polymerization process of molecular weight regulator, can also be used as PVC, polyethylene and polypropylene stabilizer and antioxidant.　　This product is all dependent on imports in our country.　　Wang Hitian in the trial, said the technology to fill the gap, the project started after the return period.　　Specializing in the import and export of chemical products, Shanghai Fresh Trade Co., Ltd. Sales manager Zhong said to this newspaper, TDMM production technology is not a problem, two kinds of raw materials hydrogen sulfide and four polypropylene under the action of three alumina catalyst can produce tert 12 carbon mercaptan. After a small trial and pilot project, Xinlong Chemical industry only produced 3 tons of TDMM in November 2005.　　Until Wang Hitian December 2006 arrested, Xinlong Chemical industry no longer produce any tert-12 mercaptan. During the trial, Wang Hitian explained that no more production was possible because the material could not be bought.　　Shanghai Fresh Zhong explained that one of the raw materials hydrogen sulfide in China, but the four polypropylene to rely on imports, and the supply of tension, there is no domestic enterprises to import such raw materials. According to the Haitian Company's project proposal, the project launched after the "annual output value of 54 million yuan, profit 18.3 million yuan."　　However, this amount of profit is a drop in the bucket for the direct economic loss of $800 million. Haitian company's project planning also said that the TDMM project plans an annual output of 3000 tons, will be all the supply of Jihua group.　　However, Xinhua reported that according to the Jilin Public Security Bureau after the investigation of the company, the TDMM of the annual demand for only about 900 tons, and the need to be qualified to record the test to participate in the bidding, and Xinlong chemical did not record.　　According to the November 2005 Jiangcheng Daily, Wang Hitiansen said the company will implement the III expansion project in the next two years, TDMM total production in 2007 to reach 10000 tons.　　Zhong said that the current domestic tdmm demand in 7,000 or 8,000 tons per year, if the annual output is really 10,000 tons, "who you sell to." Wang Hitian in response to court inquiries, said the TDMM project raw material prices in the past few years, TDMM prices are rising, each ton of TDMM profit space is compressed about 1000 yuan.　　He acknowledged that the company did not in the financing process to explain to investors the above project risk factors. The crime of illegally absorbing public deposits is commonly known as illegal operation and criminal law is applicable. Haibo Liu, associate researcher of the Academy of Social Sciences, said to the reporter, if it is borrowed moneyPeople to relatives, friends and other specific objects of private lending is a civil issue; now, the judicial organs generally identify the borrower and the company as the interest community, which is the criminal problem.