Recently, a criminal ruling of Xuzhou Intermediate Peoples Court in Jiangsu Province was published by Judgment Documents Network, which made the illegal act of occupying positions by the former deputy general manager of the assets management department of a state-owned bank known to the public through Class C households.
The criminal ruling of the second instance shows that in the first instance ruling, the defendant was found to manipulate the transaction links and prices of 400 million yuan bonds with other people by taking advantage of his position and convenience, and to convey the total interest of 2.28 million yuan belonging to a securities company to others through others, and ultimately obtain personal interests and private points by controlling class C households. The original judgment affirmed that the facts were clear, the evidence was accurate, the conviction was accurate, the sentencing was appropriate, and the trial procedure was legitimate. Therefore, the appeal was rejected and the original judgment was maintained. That is, the defendant was sentenced to two yearsimprisonment and two months probation for the crime of occupying his post.
The defendant mentioned above is Yang Zhiyu (hereinafter referred to as Yang Mou 1), the former deputy general manager of the management department of ICBC. According to the judgment, Yang Mouyi, born in 1976, was detained criminally on 7 September 2017 on suspicion of accepting bribes by non-state functionaries. He was released on bail on 13 October of the same year, and again on 29 June 2018.
Although Yang Mou11 was detained in 2017 as deputy general manager of the capital management department of Daihang Bank, his illegal behavior actually dates back to his long term in the financial market department in 2009.
The Peoples Court of First Instance held that the defendant Yang Mou-1, taking advantage of his or her position and other peoples convenience, illegally occupied the property of other units as his own, with a huge amount, whose act constituted the crime of occupying duties, should be sentenced to fixed-term imprisonment of not less than five years according to law, and may also be sentenced to confiscation of property. Yang, the defendant, voluntarily surrendered after committing a crime and truthfully confessed his criminal facts. He returned all illegal income before filing the criminal case and was given a mitigated punishment according to law. According to the defendant Yang Mou1s criminal facts, circumstances and repentance, combined with the opinions of relevant community correction departments, the application of probation can be considered that there is no danger of re-committing a crime, and there is no significant adverse impact on the community in which he lives. Therefore, the defendant Yang Mou-1 was convicted of duty embezzlement and sentenced to two yearsimprisonment and two and six months probation.
It is worth noting that the first instance of the case was judged in 2018, but the defendant Yang Mou1 appealed that the evidence of the original judgment that constituted the crime of occupancy by duty was insufficient, and that he played a minor role in helping the joint crime, should be identified as an accessory offender, with self-surrender, all withdrawal of stolen goods and other mitigating circumstances, the original sentence was too heavy.
However, the court held that the question of whether the appellant constituted the crime of duty embezzlement and the determination of the amount of the crime was concerned. According to the investigation, the evidence in the case can prove that Yang Mou-2, Wang Mou-1 and Yang Mou-1 made use of the imperfect factors in the construction of the inter-bank bond trading market, earned the price difference through the way of broad margin of national debt, and deposited the interests through class C households, and then partitioned privately. Objectively cooperate with Yang Mou-2 and Wang Mou-2 to manipulate bond trading links and prices, transfer more than 2 million yuan which should belong to Haitong Securities to Shanghai Taihui Investment Management Co., Ltd., and divide them privately. Their behavior constitutes the crime of occupying duties. Therefore, the court refused to accept the appellants reasons for appeal and the defenders advisory opinions, and decided to reject the appeal and maintain the original judgment.
Class C households breed corruption and crack down on it
In fact, it was once more common for bond market practitioners to transfer their interests through class C households. From March 2013 to the second half of 2014, the storm of investigating and dealing with the transfer of interest in the bond market swept over many institutions, including banks, securities firms, funds and trusts.
The so-called class C account is one of the three kinds of bond settlement accounts of a, B and C in the inter-bank bond market. It can only invest in the inter-bank bond market through the settlement agent of commercial banks. Compared with class a accounts established by commercial institutions and class B accounts established by non bank financial institutions such as securities companies and funds, it has the characteristics of low threshold for establishment and poor penetration of supervision. Since 2013, the anti-corruption storm in bond market has mainly involved the primary market and class C households in bond issuance. Some bond executives of securities companies and relevant departments of the national development and Reform Commission have been involved in the storm, and class C households have been suspended for some time.
The main reason for corruption in bond market is that in the past bond issuance pricing was unscientific, which provided arbitrage space for interest transmission.
A senior bond practitioner once told Chinese journalists of securities dealers that in the secondary bond market, the most likely interest transfer is under the cover of transaction price. For example, in the secondary market, almost every bonds price has the valuation provided by China Debt Boards as a reference. But in fact, besides the valuation price, bonds also have market price. The market price is mostly the fair market price calculated by bond traders according to the risk pricing. There are usually some deviations between the market price of bonds and the valuation price of Chinese bonds. Therefore, the deviation of these two prices provides space for the benefit transmission.