King&Capital attorneys Mr. Zhang Qiming and Mr. Xu Ming received a verdict in a case of misappropriation of funds, illegal disclosure and non-disclosure of important information, and false litigation during bankruptcy and reorganization of a listed company represented by the chairman of the company. This case is a major case to punish financial fraud after the implementation of the new Securities Law, which was publicly reported by CCTV-2 and included in the Typical Cases of Crimes against Listed Companies announced by the Ministry of Public Security on 3/28/2025.
Procuratorial authorities alleged that Huang, the chairman of the listed company, misappropriated 800 million yuan of the company's funds during his tenure as the chairman and de facto controller of the listed company, failed to truthfully disclose more than a dozen facts of irregular disclosure such as the occupation of funds by a related party, provision of pledge guarantees for loans to a related party, and related-party transactions, and that the amount of money involved in the false litigation was nearly 600 million yuan, and procuratorial authorities recommended that the sentence should be thirteen years' imprisonment.
Accused of multiple crimes, high sentence and was supervised by the higher level, in the trial stage entrusted Zhang Qiming, Xu Ming lawyers, a team of lawyers to carry out defense work. Lawyer team in a short period of time to quickly intervene in the case, focusing on in-depth study of the case file and write a professional opinion, and the case authorities and the parties repeatedly communicate with the case authorities, and the case authorities reached an agreement on the sentencing recommendations downward five years and six months, the prosecuting authorities in accordance with the seven years and six months of the recommended sentencing of huang mou.
The lawyer team took four aspects of defense strategy
First, the entity defense strategy: this case, although the accusation is justified, but extenuating circumstances. Procuratorial authorities accused of misappropriation of funds, false litigation, illegal disclosure, non-disclosure of important information of the three basic facts exist, but the cause of this case, is a listed company in the bankruptcy reorganization plan was approved by the court ruling, financing 1.5 billion yuan of funds to buy equity, but then the bankruptcy reorganization plan was stopped, the company's stock resumption of no hope, Huang violated the financial provisions of the funds will be diverted out of the although in line with the criminal misappropriation of funds, but with the general unlawful transfer of funds, the criminal structure. Criminal composition, but with the general illegal appropriation of company funds case is different.
Second, the legal defense strategy: this case although the punishment is legal, but the key facts overlap. In this case, Huang misappropriation of funds is the basic criminal facts and core purpose, part of the misappropriation of funds using a false lawsuit, and did not announce the relevant facts truthfully, the three facts are intertwined, each other, the determination of the number of crimes in line with the provisions of the law, but some of the facts and circumstances overlap, resulting in more repetitive evaluation.
Third, the procedural defense strategy: this case, although the trial procedure norms, but the front-end procedures are flawed. Defense lawyers through the study of the case procedures, found that although the case eventually returned to the Intermediate People's Court trial, but in the front-end procedures there are certain flaws, defense lawyers in the pre-trial meeting to be raised.
Fourth, communication strategy: although this case is a major case, but to take into account the protection of entrepreneurs. Defense lawyer team accepted the commission at the beginning, immediately communicate with the trial authorities and prosecutors, emphasizing the implementation of the spirit of entrepreneurial protection in major cases, reflecting the concerns of the defense lawyers and the defendant's claims; before and after the advance meeting, the defense lawyer team communicated with the judge and the public prosecutor on the trial procedures again, put forward the case entity, jurisprudence, procedural three defense direction; after the pre-trial meeting, the defenders have repeatedly met with the After the pre-trial meeting, the defense met with the defendant several times to accurately analyze the facts of the case and the direction of the case, and persuaded the defendant to plead guilty and accept punishment in exchange for a reduction in sentence; on the day before the trial, the defense met with the defendant, and the defense strategy was recognized by the parties, and then negotiated with the trial authority and the prosecuting authority on the sentencing repeatedly and finally reached an agreement at around 22:00 hours.
The case was tried in accordance with the law, the court ruled a substantial reduction in the Huang misappropriation of funds sentencing sentence, at the same time on three counts of concurrent penalties to be reduced, lower than the sentencing recommendation of five years and six months, decided to Huang sentenced to seven years and six months of imprisonment. After the trial, the party highly recognized the defense work.
After the implementation of the new “Securities Law”, the capital market has undergone significant changes; after the promulgation of the new “Nine Articles”, the regulatory authorities pointed to financial fraud. The listed companies either have the existing concept of the boat to seek the sword confinement, or have to ride the tiger difficult to get down the traditional path of coercion, financial counterfeiting repeatedly regulated by the heavy blow, entrepreneurs involved in the criminal in the law can not be excused in the circumstances. Defense lawyers to deal with such cases, the understanding to be sober and fair, accurate and reasonable judgment, the program should be solid and diverse, the action should be rapid and diligent, in order to achieve certain results!
Translated with DeepL.com (free version)
