Three Violations Of Registration Of Investment Companies, Resulting In Loss Of State-Owned Enterprises 88 Million

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< p > March 2005, < a href= "//www.sjfzxm.com/" > listed company < /a > Northwest Chemical Limited by Share Ltd claims that it will generate a huge loss of 90 million yuan due to investing and financing and providing guarantee to Gansu Dechang investment company.

After the sudden loss of chemical industry in Northwest China, the company and its subsidiaries violating the inside story of providing funds and guarantees for enterprises whose original independent director Wu Changxia controlled.

The investigation by the anti corruption and bribery Bureau of the Lanzhou procuratorate found that in early 2001, the 3 defendants had evaded supervision and had broken down the 50 million yuan fund of the Northwest Chemical Company to 3 Private Companies, and registered the establishment of Gansu Dechang investment company in the name of shareholders. He Junhui was the chairman of the company, but the northwest chemical industry did not appear in the registered shareholders.

After that, the 3 defendants took the deposit of the Northwest Chemical Company's bank account in the form of hypothecation guarantee and entrusted loan, and borrowed 120 million yuan from several banks, entrusted the Dechang company to invest in securities institutions for stock trading.

These matters were not disclosed in a timely and adequate manner.

Since then, the 3 defendants have continued to provide guarantees to the Dechang company in the form of exhibitions.

Up to December 2007, there was no more than 88 million yuan to be recovered in the bank deposits of "a href=" //www.sjfzxm.com/ "Northwest Chemical" /a ".

In October 2008, the Lanzhou procuratorate filed a public prosecution against the 3 defendants who were suspected of abusing their power by state-owned company employees.

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< p > the Lanzhou intermediate people's court held a sentence of 5 years, 4 years and 3 years for the former chairman of the northwest chemical industry, Yang Demao, general manager Li Xiaowen, and He Junhui, chairman of the Dechang investment company of Gansu, after the court hearing of the Central Committee of the Chinese people's Republic of China (a < href= > //www.sjfzxm.com/ > > /a >). Three defendants appealed after the sentencing.

The provincial high court was sent back for retrial on the grounds of unclear facts and insufficient evidence.

After rehearing the case, in November 27th, the Lanzhou intermediate people's court pronounced that Yang Demao, Li Xiaowen and He Junhui were sentenced to 5 years, 4 years and 3 years for their crimes of abuse of power, respectively. 3 of them were appealed after the sentence was pronounced.

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