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Market manipulator Zhu Yaoming on trialPosted by Eric Mu, November 4, 2008 2:26 PM
 Yangtse Evening Post November 4, 2008 Zhu Yaoming, a convict who had earlier been sentenced 14 years on multiple-charges of financial skullduggery including loan fraud and bribery, was in court again yesterday in Nanjing. The 52 year old man was accused of "manipulating stock prices" between January 1999 and June 2003. According to Zhu, he had confessed to the crime of market manipulation in 2003 when he was first arrested. However, while he was jailed for loan fraud and bribery, the manipulation charge was not prosecuted. It was not until four years later that the market manipulation charge finally found him, and Zhu even felt relieved. He turned down a lawyer the court assigned to him and admitted the charge against him immediately. The article did not state why the market manipulation charge was prosecuted at this time. Zhu's method, as reported by the article, doesn't seem to be very sophisticated: He bought thousands of Identity Cards (身份证) from older peasants for 10 to 50 yuan each. Using these IDs, Zhu set up a total of 6,509 stock exchange accounts, creating an appearance of high demand for shares in Hubei Biocause Pharmaceutical company by frequent trading between these fraudulent accounts. Such artificial transactions raised the stock's price from nine yuan to 25 yuan in 2000. At the peak of his illegal trading activities, Zhu had about 5 billion yuan of capital and revenues of 300 million. However, as the market hit a downturn, Zhu lost most of the money he had made. In 2003, he was arrested and put in prison for loan fraud. The court has not yet delivered its ruling on the market manipulation charges. Links and Sources
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Comments on Market manipulator Zhu Yaoming on trial
any idea what the statute of limitations is for securities fraud in china?
in the u.s., it's the earlier of (a) two years from the date on which the fraud is discovered, and (b) 5 years from the fraudulent act.
the period for commencing a securities fraud action in china appears to be much longer.
i wonder also whether the alleged fraud from 1999 is within that period, or whether the fraud began in 1999 and continued for years thereafter (which seems highly unlikely), thereby bringing the action within a shorter statute of limitations than might otherwise seem to be the case.