Unlicensed trader gets 6-year sentence
By Xu Fang |
December 9, 2009, Wednesday
|
Print Edition
Print Edition
A stock analyst was sentenced to six years in prison yesterday for making stock investments for clients without a license and causing 39 clients to suffer huge losses of 7.7 million yuan (US$1.1 million) during the bull market.
Jing'an District People's Court also imposed a fine of 3 million yuan on Shanghai Heyin Investment Management Co Ltd, the company owned by the analyst, Hao Gang.
From November 2005 to July 2007, Hao attracted 39 clients with 36 million yuan to invest.
Clients were required to open accounts in securities Hao chose.
To earn high commissions, Hao traded stocks at high frequency, using the clients' money directly.
He even bought stock shares at high prices and sold them at low prices, the court heard.
"His real purpose was to earn commissions, not to win profits for clients," a victim surnamed Li told the court.
The clients suffered a total loss of more than 7.7 million yuan in the bull market while Hao earned 2.8 million yuan in commissions.
Hao disappeared in June 2008 after he couldn't cover losses of the clients. He was caught in Liaoning Province this June.
Hao got his start in 2004 as a stock analyst by writing articles about the market for newspapers.
His accurate predictions of market trends won him a strong reputation among investors.
He used that reputation to found his company.
Jing'an District People's Court also imposed a fine of 3 million yuan on Shanghai Heyin Investment Management Co Ltd, the company owned by the analyst, Hao Gang.
From November 2005 to July 2007, Hao attracted 39 clients with 36 million yuan to invest.
Clients were required to open accounts in securities Hao chose.
To earn high commissions, Hao traded stocks at high frequency, using the clients' money directly.
He even bought stock shares at high prices and sold them at low prices, the court heard.
"His real purpose was to earn commissions, not to win profits for clients," a victim surnamed Li told the court.
The clients suffered a total loss of more than 7.7 million yuan in the bull market while Hao earned 2.8 million yuan in commissions.
Hao disappeared in June 2008 after he couldn't cover losses of the clients. He was caught in Liaoning Province this June.
Hao got his start in 2004 as a stock analyst by writing articles about the market for newspapers.
His accurate predictions of market trends won him a strong reputation among investors.
He used that reputation to found his company.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
