Investment guru pleads guilty over stock scam
By Xu Fang |
April 19, 2011, Tuesday
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Print Edition
Print Edition
A BOASTFUL investment guru who used to be interviewed on China Central Television and deliver lectures in China's top universities, yesterday pleaded guilty to making stock investment for clients without license.
Based on available evidence with prosecutors, Tian Junxiao, 55, was charged with illegally managing capital worth 7.81 million yuan (US$1.2 million) for 21 clients.
An earlier police investigation suggested the capital under Tian's management reached more than 47 million yuan and came from 77 clients.
Tian, a Hebei Province native, repeated at yesterday's court hearing that he had consulted his lawyer before starting the business and was told it was legal.
"I gave media interviews and did stock investment in three fixed securities houses. If I had known it was illegal, I would have hidden myself to do the business secretly," he argued.
Tian told the Pudong New Area People's Court he began to make stock investment in the 1990s and was good at it. To promote himself, he began to give media interviews, including on CCTV-2, and deliver lectures in top universities, like Peking, Tsinghua, Fudan and Jiao Tong universities in late 2005. He even asked an author to write a book to promote his investment success story and left his phone number in the book.
The investment wizard said he wanted people to call him to make "academic communication," instead of asking him to buy stocks.
Prosecutors alleged Tian recruited clients with the promotion and signed investment agreements with 21 of them without approval from the securities regulator. Clients were required to pay 20 to 30 percent of the profits to Tian and bear the deficits themselves.
Tian appointed his relatives, including his wife, sister and nephew, to operate the capital under his instruction in three local securities houses. Available evidence shows Tian got 20,000 yuan as reward from a client and 1.6 million yuan in commissions from the securities firms as a broker.
"Unlike other illegal operators of stock investment, Tian's economic income mainly came from commissions, not membership fees or managing fees from clients," prosecutors pointed out.
The court didn't hand down any verdict yesterday.
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