On May 10th, LegalOne, an internationally renowned rating agency for commercial transactions and dispute resolution programs, announced that the “Fraud case against the legal representative of a private enterprise” represented by Ms. Alice Liang has been awarded a LegalOne Merits (Exemplary) rating.

Case Description

In 2011, a state-owned company and a local manufacturing group in the same region controlled by Wang Mou made an equity acquisition, and both parties agreed to pay 51% of the manufacturing group's net assets at a ratio of 1:1 as the 51% of the equity acquisition price.

The state-owned company knew that the manufacturing group had insufficient funds, but still invested heavily and actively promoted the equity acquisition. Thereafter, the investigating authorities, based on the facts that Wang inflated the company's strength, improperly offset personal debts and liabilities with the company, and modified the price of the equipment contract in order to inflate the net assets, believed that Wang was suspected of the crimes of contract fraud, job misappropriation and fraud.

Manufacturing Group is a local private enterprise, and state-owned enterprises is a local state-owned enterprises with strong financial strength. Wang's enterprise launched “annual output of 1 million tons of continuous casting billets and alloy steel technology reform project” (hereinafter referred to as “technology reform project”) and successfully obtained the record, the state-owned enterprises in order to obtain the development of the technology reform project authority to profit, the manufacture of the group for the acquisition of equity.

The investigating authorities in this case found several allegations, of which the focus of controversy is whether the acquisition of equity or the acquisition of the project between the state-owned enterprises and the Manufacturing Group, what is the true purpose of the contract between the two parties, and whether it can be evaluated as a contract fraud. The focus of controversy for the crime of misappropriation of functions is whether Wang's submission of receipts for the purpose of leveling accounts constitutes misappropriation of functions. The focus of controversy of the crime of fraud is whether there is a causal relationship between the modification of the price of the equipment purchase contract and the inflated net assets, fraudulent transfer of equity.

The case was continued by lawyer Yali Liang as the defender of the second trial, which has now been ruled on January 20, 2022 to be remanded for retrial after the second trial hearing.

On January 18, 2023, the public hearing again, Liang Yali lawyer from the procedure, facts and other aspects, put forward a targeted, reasonable defense, in many communications, repeated combing of the case, the court finally partially supported the Liang lawyer's defense, the contract fraud, misappropriation of the crime of not prosecuted, only Wang Mou crime of fraud, sentenced to a substantial reduction in the sentence and fine, and achieved a good defense effect. Good defense effect.

Lawyer's work and the significance of the case

Liang lawyer intervened in this case, the evidence of the case for combing, communication with the parties to confirm the facts identified in the indictment of this case objections to the undertaking of the prosecutor submitted a written lawyer's opinion as well as change the application of compulsory measures, and the prosecutor communicated with many times. Prosecutor recognized part of the lawyer's opinion put forward by the Liang lawyer, the contract fraud, job misappropriation decided not to prosecute.

This case is a state-owned enterprises and private enterprises between the debt dispute into a criminal case, in the equity transfer disputes related to legal issues of typical significance.