In March 2021, Red Star News reported on two gold and jewelry trading companies in Shenzhen and Relevant staff members were charged with covering up and concealing criminal proceeds. Since the public prosecutor's office did not clarify the specific circumstances of the " predicate crime " in the case, the two companies involved in the case did not admit the charges, which caused concern.
More than a year after the trial, the case has made new progress. On July 25, 2022, the Yanshan District People's Court of Guilin announced its verdict and found two Shenzhen gold trading companies and their related personnel guilty of covering up and concealing criminal proceeds. The two companies were fined 6 million yuan and 2 million yuan respectively. In addition, nine legal persons, directors, and employees of the two companies involved were guilty of covering up and concealing criminal proceeds, and were sentenced to fixed-term imprisonment of 1 year and 11 months to 4 years and 6 months respectively, and were also fined.
html On July 26, a reporter from Red Star News learned from the attorneys of the two companies involved in the case that the client was not satisfied with the verdict and believed that the company and the employees involved were not guilty and would appeal.
From March 22 to 24, 2021, the case was heard in the Yanshan District People's Court of Guilin.
Case review:
The Social Security Bureau encountered telecommunications fraud.
Two jewelry companies were accused of covering up and concealing criminal proceeds.
Why are they engaged in gold jewelry trading in Shenzhen? Will the two companies be prosecuted in Guilin, Guangxi? This stems from a telecommunications fraud case that occurred in Guilin.
In September 2018, Wu, a cashier of the Social Security Bureau of Lipu City, Guilin City, Guangxi, suffered a telecommunications fraud. RMB 5.217 million in public funds from the bureau’s account was transferred to an account designated by the scammer. Afterwards, Wu was convicted of abuse of power by the court and sentenced to 2 years and 6 months in prison. Relevant judicial documents of
revealed that the 5.217 million yuan transferred from the Social Security Bureau account was split and transferred at different levels, of which 700,000 yuan was used by a couple Pan and Yang for gold trading. Through the brokerage of Shenzhen Juyi Gold Industry Co., Ltd. (hereinafter referred to as Juyi Company), the 700,000 yuan finally entered the account of Shenzhen Jinrun Bogong Jewelry Co., Ltd. (hereinafter referred to as Jinrun Company).
Half a month after the above-mentioned telecommunications fraud case occurred, on September 20, 2018, many executives and staff of Juyi Company and Jinrun Company were taken away from Shenzhen by Guilin police for investigation and later arrested.
Physical gold traded in Shenzhen Shuibei Market (picture and text are irrelevant) Pictures provided by the family members of the parties involved
From March 22 to 24, 2021, the case was heard in the Yanshan District People's Court of Guilin City. The public prosecution agency alleged that in order to seek benefits, Juyi Company, Jinrun Company and related personnel knew that the funds collected were criminal proceeds, but they still ignored the risks and helped cover up and transfer them. Their behavior violated the criminal law and should be prosecuted for the crime of covering up and concealing criminal proceeds. its criminal liability.
Red Star News reporter learned during the court hearing that Juyi and Jinrun and the related defendants did not accept the accusations made by the public prosecution agency. The defendant's legal team argued in court that the above-mentioned two companies and related personnel did not meet the criminal requirements for concealing criminal proceeds, both subjectively and objectively.
According to the judgment of the Yanshan District Court in Guilin City, during the trial, the defender proposed that Juyi Company was not subjectively and objectively consistent with the crime of covering up and concealing criminal proceeds, and it did not constitute a crime. The procuratorial organ made the wrong accusation on the grounds that Juyi Company did not cover up or conceal the proceeds of crime with criminal intent, and there was no intentional knowledge of the crime; Juyi Company's behavior did not meet the objective constitution of covering up or concealing the proceeds of crime; combating crime cannot destroy the Normal market operation order.
Jinrun Company does not recognize the criminal facts and charges accused of it, and believes that it does not constitute a crime. The defender pointed out that Jinrun Company did not constitute a cover-up or concealment of criminal proceeds. The public prosecution did not prove that there was a predicate crime and could not prove that the 1.74 billion charged were all criminal proceeds. Jinrun Company is a normal gold trading behavior. The indictment did not list the 5.06 million yuan seized by Jinrun Company; the 700,000 yuan returned by Jinrun Company to the Lipu Social Security Bureau should not be returned to the Lipu Social Security Bureau; the gold seized by Jinrun Company was Not stolen goods.
At the same time, the defendants Juyi Company, Jinrun Company and the defenders of the defendants Wu Yan, Lin Di, Lin Tao, Xu, Dong Zhou, Lin Mouling and Lin Moupeng all pointed out that the above defendants did not cover up , the criminal intention to conceal the proceeds of crime, and there is no subjective knowledge of the crime.
The court ruled:
The crime of covering up and concealing criminal proceeds was established.
The judgment showed that in October 2017, the co-defendants Pan and Yang (handled in a separate case), in order to obtain illegal benefits, committed the crime of covering up and concealing the proceeds of crime according to Vietnamese Ruan Moumou and others. (handled separately), funds from unknown sources were used to purchase gold domestically and the gold was smuggled out of the country. Pan and Yang went to Shenzhen to discuss gold transactions with the defendant Juyi Company, Wu Mouyan, Lin Moudi and others, and then established the "Yang Group" WeChat group to place orders, account submissions and transactions for gold transactions. Account reconciliation and communication. Defendants Wu Mouyan, Lin Moudi, Lin Moutao, Xu and Dongzhouzhou all joined the "Yang Group" WeChat group, and since then the group has provided assistance to both parties in their gold transactions. Because
could not meet the needs of Pan and Yang to purchase gold, Juyi Company successively purchased gold from the defendant Jinrun Company starting in 2018 for delivery to Pan and Yang.
The flow of funds after the Lipu Social Security Bureau suffered telecom fraud. It can be seen from the figure that the social security fund was transferred multiple times before being transferred to the Jinrun Company account
in the red box. The defendants Lin Mouling and Lin Moupeng acted as sellers to provide gold transactions. In order to avoid the risk of funds being banned, Pan and Yang agreed with Juyi Company and Jinrun Company that the funds to purchase gold would enter the collection account provided by the seller and be banned within thirty minutes, and the loss would be borne by the buyer. If the item is banned within ten minutes, the loss will be borne by the seller Juyi Company or Jinrun Company.
In 2018, the gold trading funds of Juyi Company and Jinrun Company were banned by the public security organs many times. Pan and Yang, together with Juyi Company and Jinrun Company, shortened the time to avoid the risk of capital ban to 10 minutes. During the gold transaction, Juyi Company and Jinrun Company illegally provided private bank accounts for payment collection; Pan and Yang contacted Vietnamese Ruan Moumou and others to pay the gold purchase price through other people's accounts from unknown sources, and contacted a logistics company in Shenzhen The purchased gold was transported from Shenzhen to Nanning , and Pan and others took the gold away.
It has been verified by forensic accounting that from October 2017 to September 19, 2018, Pan and Yang purchased 6,379 kilograms of gold through Juyi Company, with a transaction amount of more than RMB 1.74 billion. From August 20 to September 20, 2018, Pan and Yang purchased 2,251 kilograms of gold from Jinrun Company through Juyi Company, with a transaction amount of more than RMB 59.22 million, of which the amount found to be related to telecommunications network fraud crimes was 982,200 yuan.
The Yanshan District Court of Guilin City held that the defendants Juyi Company and Jinrun Company knew that the funds were proceeds of crime and provided accounts to receive funds for gold transactions. The circumstances were serious and their actions constituted the crime of covering up and concealing the proceeds of crime.
The two companies and their nine persons in charge and directly responsible persons were found guilty of covering up and concealing the proceeds of crime based on a common criminal intention. Five of them voluntarily confessed and accepted punishment, and could be given a lenient punishment.
Among them, Juyi Company and Jinrun Company were guilty of covering up and concealing criminal proceeds and were fined RMB 6 million and RMB 2 million respectively. Nine managers and directly responsible personnel of the two companies were sentenced to fixed-term imprisonment of 1 year and 11 months to 4 years and 6 months respectively, and were also fined.
Indictment of this case
The company involved:
The company and the employees involved are not guilty
If they refuse to accept the verdict, will file an appeal.
Regarding this verdict, the attorneys for Juyi Company and Jinrun Company said that from the perspective of the crime, the "Criminal Law" stipulates that knowingly If the proceeds of crime and the proceeds thereof are harbored, transferred, purchased, sold on behalf of others, or concealed or concealed in other ways, it constitutes the crime of concealing or concealing the proceeds of crime or the proceeds of crime.
"The Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Criminal Cases Concealing, Concealing Criminal Proceeds, and Proceeds from Crime" stipulates that "Knowing that the proceeds are criminal proceeds and the proceeds generated from them, using methods other than harboring, transferring, acquiring, or selling on behalf of others" , such as intermediaries to introduce buying and selling, receiving, holding, using, processing, providing capital accounts, assisting in converting property into cash, financial instruments, securities, assisting in transferring and remitting funds overseas, etc., shall be deemed as Article 300 of the Criminal Law. "Other methods" stipulated in Article 12.
The market-oriented behavior of Juyi Company and Jinrun Company in this case does not fall within the circumstances specified in the above-mentioned laws and judicial interpretations. From the perspective of subjective knowledge, Juyi Company. In the business activities of Jinrun Company, the transaction price was the same as other transactions. The court found that Juyi Company and Jinrun Company subjectively knew that this did not fall into the above-mentioned legal and judicial interpretations.
Juyi Company and Jinrun Company acted as agents. Lawyers all said that the client was not satisfied with the verdict and believed that the company and the employees involved were not guilty and would appeal.
Red Star News reporter Zhang Yanliang
Intern editor Zhu Jieying
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