The former Director of the Economic Commission of Nanjing was sentenced to 7 million profit for insider trading

The Liu Baochun of the crime of insider dealing sentenced to the first trial convicted of illegal profit more than 7 million 5 years, Nanjing Economic Commission of the original director of Liu Baochun, for allegedly "Gaochun Ceramic" stock insider trading, illegal profit of more than 7 million yuan, this Jiangsu first insider trading crime case, after the Nantong Intermediate Court for half a year of trial, On December 30, 2010, the first instance judgment was sentenced to Liu Baochun imprisonment for 5 years with the offence of insider dealing, and confiscated more than 7 million yuan for illicit proceeds.　　The case is also the first national government staff involved in insider trading cases, has caused the Ministry of Public Security, the China Securities Regulatory Commission and other high-level attention. January 2003 listed Gaochun ceramics, main daily-use ceramics manufacturing. April 2009, the stock price hovering around 7 yuan, April 20, Gaochun ceramic suspension plan to restructure the day before, the stock opened only a few minutes after the rapid trading, the stock price closed at 8.13 yuan, and this trading is also November 2008, Gaochun Ceramics for the first time limit, and this trading limit and "coincidence" appear before major positive announcements. April 21 due to the reorganization of the Gaochun ceramics announced suspension, May 22 recovery on the day that Rose 9.96%.　　As of June 8, the 10-day consecutive trading day to 21.07 yuan, the share price rose more than 180%. June 29, 2010, by the Provincial High Court designated, Nantong first session of the court hearing this case. Together with Liu Baochun, his wife, Nanjing Securities Co., Ltd. staff Chen Chuiling.　　Due to the high degree of concern, the Court on the day, the Ministry of Public Security, the China Securities Regulatory Commission, provinces and cities courts a total of more than 60 people attended the trial process. According to the prosecutor, from February 2009 to April, the defendant Liu Baochun on behalf of the Nanjing Economic Commission, participated in the 14th Institute of China Electronics Technology Group Corporation and its subordinate enterprises Chi Group Co., Ltd., and the Gaochun County People's government to discuss the reorganization Gaochun Ceramics Co., Ltd. process, Inform the wife Chen Chuiling of the information that has a significant impact on the price of the securities transaction before it is made public.　　After the two people through conspiracy, in the insider information price sensitive period, the use of their household control of the stock account, through the online commissioned transactions, successively 6 times to buy Gaochun ceramics 603,900 shares, from May 22, 2009 to June 24, will Gaochun ceramic stocks sold, illegal profit of more than 7 million yuan. Liu Baochun is a Xinghua person, born in 1965, Master of Philosophy, has been the deputy secretary of Lishui County, county magistrate, Nanjing Municipal Committee of the Deputy Secretary of the Chum, Commission director and other posts. Chen Chuiling, born in 1964, was a staff member of Nanjing Securities Co., Ltd. After the incident, the case has aroused the attention of the Ministry of Public Security, and the case to the Public Security Bureau of Jiangsu Province, November 23, 2009, the Provincial Public security Bureau will be detained for two people; December 29, the 14 session of the NPC executive meeting Liu Bao Spring Nanjing Economic Committee director of the Office and the province of the NPC deputies　　December 30 Liu Baochun husband and wife by Jiangsu Province People's Procuratorate approved the arrest. Nantong in the court after the case, set up a large High-profile trial leading group, 20On the morning of December 30, 10, the court made a first-instance judgment that Liu Baochun was sentenced to five years ' imprisonment for insider trading and confiscated more than 7 million of the ill-gotten gains. Guo Xiaochuan got insider information. Making money is too easy. Generally speaking, insider trading acts as follows: Insiders use insider information to trade securities or advise others to buy and sell securities on the basis of insider information, and insiders disclose insider information to others to make use of the information for insider trading.　　; Non-insider officers obtain insider information through improper means or other means and sell or advise others to buy or sell securities on the basis of that information. Insiders said that insider trading activities for the purpose of achieving profit or loss, using its special status or opportunities to obtain insider information and securities trading. Obviously, if you can get the news of which company to reorganize in advance and "lurk" in, then, can get huge profiteering suddenly. Because of this, insider trading is often regarded as the "first cancer". It is reported that 2010 1 to October, the SFC to accept a total of 114 insider trading clues, case 42 cases of insider trading, as a result of insider trading 16 individuals, 2 institutions to make administrative penalties, 15 suspected insider trading crime cases transferred to public security organs.　　Ma Yan Liu Pu two big cross-examine the injured shareholder can lodge a claim?　　Yes, but the evidence is difficult, and the relevant laws are not perfect. Jiangsu Shanyong Law firm director Lawyer Shanyong introduced, Liu Baochun insider trading crime cognizance and was sentenced, theoretically, shareholders can be in accordance with its civil claims, but the actual evidence may be more difficult, because the relevant laws and regulations are not very sound. He introduced that the cases of shareholder's infringement are due to the false statement of listed companies or the various insider trading including "Rat storehouse". Comparatively speaking, these two kinds of lawsuit fight up, the former's chance of success is bigger, because the Supreme Court has already had the judicial explanation, the evidentiary responsibility is inverted, is advantageous to the shareholder. In the case of the civil claim for insider trading, the Supreme Court has no judicial explanation and no direct stipulation of laws and regulations. Then the shareholders to defend their rights, we must prove that their loss is in the Liu Baochun insider trading period, and can prove the loss and Liu insider trading exists causal relationship, however, such a causal evidence will be more difficult.　　But Shanyong introduced, also do not exclude shareholders first lawsuit, rely on the practice of "reverse force" the possibility of perfect law.　　Is there any investment value in Gaochun ceramics? At the end of April, if the success of the win or restructuring may be suspended with the Nanjing 14 "reorganization" of the wind, Gaochun ceramics in 2009 became a big "demon stock", 10 consecutive trading days to 21.07 yuan, the stock price rose more than 180%, Liu Baochun also because of the windfall and jail. So what's the latest performance of this stock?　　Is there any investment value? Yesterday, some people in the industry, as a result of two consecutive years of losses, as early as February 24, 2010, Gaochun Ceramics wearing a "*st" hat, if the end of the annual report in April 2011, the deadline for disclosure, has not swungOr a successful reorganization, the unit will face the risk of suspension. And the road to restructuring seems confusing.　　Industry insiders, now 14 has become a major shareholder of *st Gautau, asset restructuring program in early January 2010 won the approval of the SASAC, but the SFC has not yet passed the restructuring plan. Shandong Zhang Senguo Financial Research Institute analyst, said that the Liu Baochun case sentencing early in the expected, so the verdict itself will not have too much impact on the stock price, or even to a certain extent, also played a short-term increase in the price effect. But in the long run it is the fundamentals that determine the stock price, especially now the CSRC is very cautious about restructuring, he advised investors to stay away from such *st stocks, in the event of suspension of the market will be disastrous. Ma Yan Liu Pu