Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200807/20080701/article_365187.htm
Five face trial over selling share software
Created: 2008-7-1 0:26:35
Author:Zou Qi
FIVE members of an unlicensed financial service company went on trial at Pudong New Area People's Court yesterday for allegedly providing illegal share software and sales.
Hong Zhicheng, 47, and with Shanghai native Shu Miaogen, 66, allegedly registered Shanghai Gulaixin Investment and Management Co. Ltd in early 2006, the court heard. However, the company was not granted a license by the China Securities Regulatory Commission.
The other three co-defendants then joined the company to sell stock-analysis software, gaining more than 7 million yuan (US$1.02 million), prosecutors said.
As well as selling the illegal software which was designed and produced by the company, the firm also signed agent agreements with customers to operate their share-trading accounts for them, prosecutors allege. The service charged 5 to 10 percent of the amount of funds held, and such illicit gains amounted to another 6 million yuan, according to prosecutors.
One of the victims surnamed Wu, aged 57, paid 50,000 yuan in July 2006 to buy Gulaixin's stock software and market advice, after the company promised her 30 percent annual profit in the stock market if she used the software.
When the profits failed to materialise, Wu checked into the company's background and discovered it wasn't licensed. She repeatedly asked for a refund but was refused, the court heard.
Co-defendant Zhang Juanliang, the company's customer service manager, denied most of the charges against him in court yesterday.
Zhang, 41, told the court he was only following orders and did not engage in providing stock advice or market consultancy. "I just offered after-sales services for the software, and Hong Zhicheng decided which customers could receive refunds if the software didn't work," Zhang said.
"I was only paid 2,200 yuan every month as the customer service manager in the company, and I had no other income."
Police arrested the five company members on July 27 last year.
Judges warned the public to be careful when investing in the city's stock market, saying it's extremely risky for seniors to invest all their savings into shares.
Hong Zhicheng, 47, and with Shanghai native Shu Miaogen, 66, allegedly registered Shanghai Gulaixin Investment and Management Co. Ltd in early 2006, the court heard. However, the company was not granted a license by the China Securities Regulatory Commission.
The other three co-defendants then joined the company to sell stock-analysis software, gaining more than 7 million yuan (US$1.02 million), prosecutors said.
As well as selling the illegal software which was designed and produced by the company, the firm also signed agent agreements with customers to operate their share-trading accounts for them, prosecutors allege. The service charged 5 to 10 percent of the amount of funds held, and such illicit gains amounted to another 6 million yuan, according to prosecutors.
One of the victims surnamed Wu, aged 57, paid 50,000 yuan in July 2006 to buy Gulaixin's stock software and market advice, after the company promised her 30 percent annual profit in the stock market if she used the software.
When the profits failed to materialise, Wu checked into the company's background and discovered it wasn't licensed. She repeatedly asked for a refund but was refused, the court heard.
Co-defendant Zhang Juanliang, the company's customer service manager, denied most of the charges against him in court yesterday.
Zhang, 41, told the court he was only following orders and did not engage in providing stock advice or market consultancy. "I just offered after-sales services for the software, and Hong Zhicheng decided which customers could receive refunds if the software didn't work," Zhang said.
"I was only paid 2,200 yuan every month as the customer service manager in the company, and I had no other income."
Police arrested the five company members on July 27 last year.
Judges warned the public to be careful when investing in the city's stock market, saying it's extremely risky for seniors to invest all their savings into shares.
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