Ma Xingtian, former chairman of Kangmei Pharmaceuticals, sentenced to 12 years in prison, eligible investors can receive a total of 2.459 billion yuan in compensationFly into the homes of ordinary people
Source/Orient IC
Xinmin Evening News (Reporter Lian Jianming) Foshan Court Network reported on November 17 that the Intermediate People’s Court of Foshan City, Guangdong Province publicly pronounced on the case of 12 people including Ma Xingtian, the former chairman and general manager of Kangmei Pharmaceutical, on manipulation of the securities market on November 17. Ma Xingtian was sentenced to 12 years of imprisonment and fined RMB 1.2 million for the crime of manipulating the securities market, disclosing violations of regulations, not disclosing important information, and several crimes of bribery. Manager Xu Dongjin and 11 other responsible persons were sentenced to fixed-term imprisonment and fined for participating in related securities crimes.
The court found that between 2015 and 2018, Ma Xingtian, in cooperation with others, raised a large amount of funds in violation of regulations, used the actual control of the stock trading account to buy and sell, continuously trade, and manipulate the stock price and trading volume of Kangmei Pharmaceutical, resulting in a total of 20 times The cumulative trading volume for 10 consecutive trading days has reached more than 30% of the total trading volume of the securities during the same period, and the accumulated trading volume for a total of 10 consecutive trading days has reached more than 50% of the total trading volume of the securities during the same period. Ma Xingtian also organized, planned, and directed the company’s relevant personnel to conduct financial fraud and disclose false operating information to the company’s shareholders and the public; deliberately concealed the controlling shareholder and related parties’ non-operating capital occupation of more than 11.6 billion yuan without disclosing it. In addition, from 2005 to 2012, Ma Xingtian sought illegitimate benefits for Kangmei Pharmaceuticals, bribing a total of HK$7.9 million and RMB 600,000 to several state officials. Kangmei Pharmaceuticals and Ma Xingtian both constituted the crime of bribery by the company.
On November 12, the Kangmei Pharmaceutical Special Representative Lawsuit filed by the Investment Service Center was sentenced in the first instance by the Guangzhou Intermediate People’s Court (Guangzhou Intermediate People’s Court), ordering Kangmei Pharmaceutical Co., Ltd. to compensate securities investors for the infringement of false statements in the annual report. 2.459 billion yuan, and sentenced Ma Xingtian and his wife Qiu Xiwei and other four former senior executives to bear 100% joint and several liability for compensation.
In the two trials of Kangmei Pharmaceuticals in the past week, Ma Xingtian not only had to lose money but also went to jail, and released a strong signal of a strict crackdown on illegal securities activities in accordance with the law and resolutely safeguarding the deepening reform and healthy development of the capital market.
According to the first-instance judgment of the Kangmei Pharmaceutical Special Representative’s litigation, 52,037 investors can receive a total of 2.459 billion yuan in compensation. This is the largest compensation case and the largest number of investors in the history of China’s capital market.
On November 17th, the Investment Service Center announced the first case of a special representative’s lawsuit against Kangmei Pharmaceuticals. The judgment confirmed a total of 55,326 investors within the scope of eligible right holders, and the Guangzhou Intermediate People’s Court entrusted China Securities Investor Protection Fund Co., Ltd. to conduct loss calculations.
1. Risk deduction
After calculating the loss and deducting the system risk, there are 3289 investors whose loss result is zero or negative. In the end, 52,037 people were awarded compensation, with a total amount of about 2.459 billion yuan.
2. Distribution of Compensation Investors
The judgment determined the scope of registration of the aforementioned eligible right holders. According to the details of the plaintiff’s award in the judgment, the distribution of investors is as follows:
There were 51,399 individual investors, accounting for about 98.77% of the total eligible investors, of which 51,231 were individual investors below 500,000, accounting for about 98.45% of the total number of awards.
Investors can search for “Guangzhou Micro Court” through the WeChat Mini Program to enter the Guangzhou Micro Court, click on the “Micro Litigation” column at the bottom of the page, and select the “Representative Litigation” entry to enter the representative litigation platform to inquire about personal compensation information.
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