Supreme People’s Procuratorate: We will work together with the China Securities Regulatory Commission and other departments to crack down on all kinds of financial fraud crimes in the capital market
On January 3rd, the Supreme People’s Procuratorate released three typical cases of strictly punishing financial falsification crimes by intermediary organizations, and used these cases to educate and warn accountants, auditors, sponsors, lawyers, asset assessors and other types of intermediary organizations to abide by laws and regulations, fulfill their duties, and demonstrate the judicial attitude of strictly punishing financial falsification crimes by intermediary organizations in accordance with laws to protect the legitimate rights and interests of investors.
The Supreme People’s Procuratorate introduced that since 2021, procuratorial organs across the country have prosecuted 206 cases of financial falsification related crimes. Among them, from January to November in 2024, 82 people were prosecuted, with an increase of 78.3% year-on-year. Since 2021, the Supreme People’s Procuratorate has also assigned and supervised the handling of 31 major financial falsification cases and handed over a number of such cases to local procuratorial organs. Procuratorial organs across the country have handled major cases that have attracted public attention such as those involving Kangde New Materials, Kangmei Pharmaceutical, and Zhangzi Island, and have strictly prosecuted those responsible personnel such as controlling shareholders, actual controllers, directors, supervisors, senior management personnel, and intermediaries.
The three typical cases released this time include the case of Mr. Su’s falsification of supporting documents and significant inaccuracies in his report, the case of Mr. Zhu and Mr. Liu providing false supporting documents, and the case of Mr. Wu providing false supporting documents.
The Supreme People’s Procuratorate pointed out that these typical cases cover the main types of financial falsification crimes by intermediary organizations at present, summarize the common specific violations of professional norms by intermediaries in their daily work, and provide identification rules for obvious corporate falsification and serious negligence for reference in handling cases. At the same time, these cases cover various criminal methods of intermediaries such as certified public accountants and asset assessors, including tailored audit or assessment reports according to the preset data of enterprises, checking and verification as a mere formality without fulfilling necessary audit procedures, actively cooperating with or assisting enterprises in modifying financial data, or even guiding the falsification of audit evidence. They aim to educate and guide intermediaries to abide by the bottom line of “not making fake accounts” through case interpretation.
Du Xueyi, director of the Economic Crime Procuratorate Hall of the Supreme People’s Procuratorate stated that procuratorial organs adhere to the important position of strictly cracking down on financial falsification crimes to safeguard investors’ legitimate rights and interests as part of their duties. By continuously increasing punishment efforts, clarifying judicial standards, and promoting industry governance, procuratorial organs aim to promote the construction of a market environment that is open, transparent, and based on integrity. In the next step, procuratorial organs will continue to work with relevant departments such as the China Securities Regulatory Commission to strictly crack down on various crimes related to capital market financial falsification, protect investors’ legitimate rights and interests, and promote the healthy development of the capital market with legal force.
