Shanghai No.2 Intermediate People’s Court held a trial in the first instance to hear the fund-raising fraud case of Shanghai Tongjiang Investment Group Co., Ltd. and Zhang Baoguo.

　　Cctv newsAccording to WeChat WeChat official account of Shanghai No.2 Intermediate People’s Court, on June 15th, the Shanghai No.2 Intermediate People’s Court held a trial in the first instance to hear the fund-raising fraud case of the defendant Shanghai Tongjiang Investment Group Co., Ltd. (hereinafter referred to as Tongjiang Group) and the defendant Zhang Baoguo.

　　The public prosecutor alleged that the defendant Tongjiang Group, the defendant Zhang Baoguo, together with related companies such as You Wenkai (sentenced) and Hexing Financial Holdings Investment Group Co., Ltd. (hereinafter referred to as Hexing Company), have issued wealth management products by setting up a fund pool, fictitious investment projects or creditor’s rights, repeated issuance, etc. since 2014, and illegally raised funds from the public with high returns and promises to pay principal and interest when due, so as to maintain the capital chain. By February 2019, Hexing Company had illegally raised funds from the public totaling RMB 28.74 billion (all the following currencies are RMB), most of which were used to pay investors’ principal and interest, be occupied by affiliated companies, pay high sales commissions and company operations, etc. A small part of the funds were used by Zhang Baoguo personally for buying houses and stock trading, and the unpaid principal reached RMB 8.12 billion at the time of the incident, involving more than 19,000 investors.

　　The public prosecutor believes that Tongjiang Group, the defendant unit, illegally raised funds by fraud for the purpose of illegal possession, and the amount is extremely huge. As the person in charge directly responsible for Tongjiang Group, the defendant Zhang Baoguo should be investigated for criminal responsibility for the crime of fund-raising fraud.

　　During the trial, the public prosecution agency produced relevant evidence, and the defendant Tongjiang Group, the defendant Zhang Baoguo and their defenders expressed their opinions on the facts, charges and sentencing accused by the public prosecution agency.

　　More than 340 people, including the defendant’s family members and fund-raising participants, attended the trial.

　　The Shanghai No.2 Intermediate People’s Court will decide the case in due course.