More than 30.3 billion yuan of funds have been absorbed, and more than 4.1 billion yuan of investors principal has not been cashed. The once popular P2P platform beimi wallet was adjudicated in the first instance.
On December 3, the first instance of Xuhui District Peoples Court of Shanghai publicly pronounced the case of Cui Wei and other five defendants illegally absorbing public deposits. After the first hearing on November 25, 2019, and with the approval of Shanghai First Intermediate Peoples court to extend the trial time limit, the trial was held again after a year, and the trial has now been concluded.
The Xuhui court sentenced Cui Wei and other five defendants to imprisonment ranging from five years to nine years and six months, and fined 300000 to 500000 yuan for the crime of illegally absorbing public deposits.
The court found that in December 2014, in order to seek illegal interests, the defendants Cui Wei and Yao kunjie jointly invested in the establishment of Shanghai Beitao Financial Information Service Co., Ltd. (hereinafter referred to as Beitao company). Without the approval of relevant departments, they organized personnel to carry out Internet financial business relying on the beimi wallet network platform. By publishing Internet advertisements such as recharge and cash back, promising fixed income, signing dividend plan and fixed deposit plan and other electronic service agreements, Beitao company has wantonly illegally absorbed public deposits.
Cui Wei and Yao kunjie are jointly responsible for the above illegal business. After recruitment, the defendants Li Ying, Xu Qian and Wei Yanjie successively entered the company as senior executives, jointly contributing to the implementation and completion of the above-mentioned illegal activities.
According to judicial audit, from March 2015 to July 2018, Cui Wei, Yao kunjie and others have absorbed more than 190000 investors with a total of more than 30.3 billion yuan of funds, and the total amount of investors principal has not yet been paid, totaling more than 4.1 billion yuan. The above funds are used for various purposes, such as foreign loans, stock investment, cashing principal and interest, company operation, etc. During this period, Li Ying participated in the absorption of more than 30.3 billion yuan; Xu Qian participated in the absorption of more than 26 billion yuan; Wei Yanjie participated in the absorption of more than 21.5 billion yuan.
On July 13, 2018, public security personnel went to the business premises of Beitao company to arrest Yao kunjie and Li Ying. On July 14 of the same year, after receiving a telephone call from public security personnel, Cui Wei took the initiative to go to the public security organ for investigation. On July 14 and July 16 of the same year, Xu Qian and Wei Yanjie voluntarily surrendered to the public security organs. After arriving at the case, all the defendants truthfully confessed their basic facts.
In the course of the case, Li and Yao recovered nearly $370.9 billion in capital. Cui Wei and Yao kunjie employed lawyers and filed more than 20 lawsuits against several civil subjects, involving more than 2 billion yuan. At present, five cases have been adjudicated to come into effect, and the loan principal and interest amount to more than 400 million yuan. By the end of the judgment of this case, Yao kunjie, Li Ying, Xu Qian and Wei Yanjie had withdrawn their illegal income of 300000 yuan, 115000 yuan, 600000 yuan and 1020000 yuan respectively.
Xuhui court held that the defendants Cui Wei, Yao kunjie, Li Ying, Xu Qian, Wei Yanjie and others, without the approval of the relevant departments, joined forces to illegally absorb public deposits and disrupt the financial order. Their acts have constituted the crime of illegally absorbing public deposits and the amount is huge. Due to the huge amount of the five defendants participation in the public deposit and the large number of investors involved, resulting in the failure to pay a huge amount of more than 4 billion yuan, the court made the above judgment in accordance with the law in light of the fact, nature, circumstances of the defendants crime, the degree of harm to society, and the defendants attitude of confession and repentance.
Finally, the court ruled that the defendant Cui Wei committed the crime of illegally absorbing public deposits and was sentenced to 9 years and 6 months imprisonment and a fine of 500000 yuan. Yao kunjie, the defendant, committed the crime of illegally absorbing public deposits, was sentenced to five years imprisonment and fined 300000 yuan.
Two family members of the accused watched the verdict, and more than 19600 netizens watched the live broadcast of the verdict through the China open court trial website. After the case judgment came into effect, Xuhui court said that it would immediately start the relevant property enforcement procedures to recover losses for investors as much as possible.
It is worth mentioning that Yao kunjie, the founder of bemi wallet, was born in 1990. He is a 2012 graduate of Fudan University School of economics. He is also a celebrity and an angel investor. In addition, the founder team of bemi wallet shows its talents with high education. According to its official introduction, the founding team members came from Tencent, J.P. Morgan, Morgan Stanley and other industrial institutions, and the risk control team once managed the domestic private equity fund, which ranked first in revenue in recent two years.
The beautiful beimi wallet fell at the beginning of the thunder tide in the online lending industry in the second half of 2018, and was unable to cope with the surging industry cashing tide.
On July 16, 2018, bemi wallet issued a benign exit announcement, but only one day later, it announced that its two major shareholders were fully cooperating with the investigation of the public security organ, and the company had no cashing plan.
In November 2018, the public security organ formally intervened and announced that the Xuhui branch of the Shanghai Public Security Bureau, in July 13th, filed a case against Shanghai Beto Financial Information Service Co., Ltd. (beimi purse) for investigating the crime of illegally absorbing public deposits, and 5 criminal suspects such as Yao had been taken criminal coercive measures according to law; Cui, the legal representative of bimi purse, had been the procuratorate of the Xuhui District peoples Procuratorate. The arrest was approved according to law.