＂Bond Sister＂ Sun Mingxia Bribery Details Exposure： Sending millions of deputy directors for underwriting bonds

Recently, a reporter from The Paper (www.thepaper.cn) learned from a judgment published by China Judgment Document Network that Sun Mingxia, the "first sister of bonds", paid a bribe of RMB 4.5 million to a deputy director-level official in order to successfully underwrite the bonds of many companies in Zhejiang.

This deputy director-level official is Liu Zhiwen, former deputy director of the Finance Department of Zhejiang Development and Reform Commission. The judgment also shows that Sun Mingxia, the "Bond Sister", underwritten corporate bonds in Zhejiang during the nine years (October 2004-October 2013) totaling RMB 63.55 billion.

Sun Mingxia once served as vice president, general manager and president of fixed income department in Hualin Securities, and also served as general manager of fixed income department in Guosen Securities.

Sun Mingxia

Conspiracy to take bribes was sentenced to five years.

The Paper reporter noted that the above judgment was the first instance of criminal judgment, Liu Zhiwen’s husband Wang Yigong’s crime of accepting bribes. This judgment and the first-instance judgment of Li Yuejin, former director of Finance and Finance Department of Zhejiang Development and Reform Commission, were published on the same day of September 9, 2016 on China Judgment Document Network. Both judgments were made by Jinhua Basic Court of Zhejiang Province.

Criminal judgment, the first instance of Wang Yigong’s crime of accepting bribes, showed that the defendant Wang Yigong, a native of Feixian County, Shandong Province, was the legal representative of Zhejiang Aode Purification Engineering Co., Ltd., and was criminally detained by the Zhejiang Provincial Public Security Bureau on July 29, 2014 on suspicion of accepting bribes, and was arrested on August 15 of the same year.

The People’s Procuratorate of jindong district, Jinhua City accused that from 2005 to 2013, Liu Zhiwen, the wife of the defendant Wang Yigong (who successively served as the chief clerk, deputy researcher and deputy director of the Finance and Finance Department of the Zhejiang Development and Reform Commission, handled another case), took advantage of her position to seek benefits for Guoxin Securities Company, Huaxi Securities Company and Hualin Securities Company, where Sun Moujia once worked, and after conspiring with her husband, the defendant Wang Yigong, passed Wang Yigong.

The Paper reporter confirmed that Sun Moujia was a star figure in the bond market, "Bond Sister" Sun Mingxia, through the explanation of Sun Moujia’s employment in Huaxi Securities, Hualin Securities and Guoxin Securities presented by the public prosecution agency in court and the comparison of public information.

The judgment shows that Sun Mingxia served as the managing director of fixed income headquarters in Huaxi Securities from October 2004 to June 2007, engaged in bond issuance and sales; From June 2007 to August 2008, he served as assistant to the president of Hualin Securities; From August 2008 to March 2011, he served as the vice president of Hualin Securities, in charge of the company’s fixed income business; From March 2011 to February 2012, he served as the president of Hualin Securities, in charge of the company’s fixed income headquarters, investment bank headquarters and Beijing office; From June 2012 to October 2013, he served as President of the Fixed Income Division of Guosen Securities.

Criminal judgment, the first instance of Wang Yigong’s bribery crime, showed that it was found through court trial that in the second half of 2008, Hangzhou Zhuolian Investment Consulting Co., Ltd. was established in the name of his brother-in-law, Hu Mou, and a false bond sales consulting agreement was signed with Sun Mingxia. On April 30, 2009, Sun Mingxia remitted RMB 3.5 million from Hualin Securities Company to the account of Hangzhou Zhuolian Investment Consulting Co., Ltd., and later Wang Yigong accepted the above money and used it for the daily operation and family expenses of the companies under his name.

In addition, in the first half of 2010, Wang Yigong opened two accounts in Hangzhou CITIC Bank in the name of his mother. After Liu Zhiwen informed Sun Mingxia, Sun Mingxia transferred 500,000 yuan into the accounts twice on June 3 and August 12 of the same year, and Liu Zhiwen and Wang Yigong accepted them.

On August 4, 2016, the People’s Court of jindong district held that the defendant Wang Yigong conspired with the staff of state organs, knowing that the staff of state organs took advantage of their position to seek benefits for the trustee, but still illegally accepted bribes from others, and the amount was extremely huge. His behavior constituted the crime of accepting bribes, which was a joint crime and should be investigated for criminal responsibility according to law. Defendant Wang Yigong played a secondary and auxiliary role in the joint crime, and was an accessory, so his punishment should be mitigated. According to the law, Wang Yigong was convicted of accepting bribes, sentenced to five years in prison and fined 500,000 yuan.

In order to facilitate bribery, it is suggested that officials register consulting companies.

According to the judgment and public information, Liu Zhiwen, female, was born in July 1968 and is 48 years old. Liu Zhiwen served as the deputy director of the Planning and Economic Commission of Zhejiang Province in 1998, the director of the Finance Department of the Development Planning Commission of Zhejiang Province from 2001 to 2006, the deputy researcher of the Finance Department of the Development and Reform Commission of Zhejiang Province in November 2006, and the deputy director of the Finance Department of the Development and Reform Commission of Zhejiang Province from January 2009 to May 2014, and was specifically responsible for the declaration and duration management of corporate bonds. After May 2014, Liu Zhiwen was transferred to the position of Deputy Director of Social Development Department of Zhejiang Development and Reform Commission until the case was filed in July 2014.

A witness Ding’s testimony presented by the public prosecution agency confirmed that Liu Zhiwen had been in charge of bond-related work during his work in the Finance Department of the Provincial Development and Reform Commission.

The testimony of Sun Mingxia, a witness, confirmed that Sun Mingxia was engaged in bond issuance in a number of securities companies, and went to Zhejiang Province to conduct business in 2005. He was introduced to Liu Zhiwen, who helped him in bond issuance. In order to thank Liu Zhiwen for his help in the process of underwriting bonds and facilitate the transfer of benefits to Liu Zhiwen, Sun Mingxia suggested Liu Zhiwen to register and establish an investment consulting company in 2009.

Liu Zhiwen asked her husband, Wang Yigong, to operate this matter and set up Hangzhou Zhuolian Investment Consulting Co., Ltd. In fact, Zhuolian Company did not provide any services for Hualin Securities. In the name of consulting fees, Sun Mingxia remitted 6.5 million yuan into Zhuolian Company’s account in April 2009 in two installments, of which 3 million yuan was remitted after posting, and the other 3 million yuan was explicitly given to Liu Zhiwen, and the remaining 500,000 yuan was also given to Liu Zhiwen after deducting the transfer tax.

In 2010, after learning that Liu Zhiwen was short of money in buying a house, Sun Mingxia offered to give Liu Zhiwen some money to show his help in his work. Later, according to the account provided by Liu Zhiwen, Sun Mingxia arranged for two transfers totaling RMB 1 million to Liu Zhiwen’s husband’s mother account.

In addition, the above judgment shows that Liu Zhiwen, an accomplice, made statements and excuses, which confirmed that he knew each other in the process of underwriting Hangzhou Development Bond Business in Sun Mingxia. During 2008-2009, Sun Mingxia wanted to underwrite the bonds of Zhejiang Energy Group and Zhejiang Communications Investment Group. Liu Zhiwen recommended Sun Mingxia’s team to the above two units and strived for and coordinated with the National Development and Reform Commission, so that Sun Mingxia could underwrite the above business smoothly and obtain huge profits.

The summary of a group of corporate bonds issued by the public prosecution agency shows that the Reply of the National Development and Reform Commission on the Approval of Zhejiang Energy Group Co., Ltd. to Issue Corporate Bonds in 2009 confirmed that the corporate bonds of Zhejiang Energy Group Co., Ltd. were issued on February 23, 2009, and the fundraising scale was 4.7 billion. The lead underwriter was Hualin Securities. In 2009, the corporate bonds of Hangzhou Urban Construction Investment Group Co., Ltd. were issued on April 14, 2009, and the scale of fund-raising was 2.2 billion. The lead underwriter was Hualin Securities. In 2009, the corporate bonds of Zhejiang Communications Investment Group Co., Ltd. were issued on March 25, 2009, and the fund-raising scale was 3 billion. Hualin Securities was one of the lead underwriters.

The lead underwriters of the bonds issued by the above three companies were all securities companies that Sun Mingxia worked for at that time.

In addition, the 2009 corporate bond sales consultancy agreement of Hangzhou Urban Construction Investment Group Co., Ltd. signed by Hualin Securities and Zhuolian Company confirmed that Hualin Securities agreed to pay a total consultancy fee of RMB 3.5 million to Zhuolian Company.

The above judgment also revealed the corporate bonds underwritten by Sun Mingxia, the first bond sister, in Zhejiang in the past nine years. From October 2004 to June 2007, during Sun Mingxia’s tenure at Huaxi Securities, Huaxi Securities underwritten corporate bonds in Zhejiang totaling 5 billion yuan. From June 2007 to February 2012, during Sun Mingxia’s tenure at Hualin Securities, Hualin Securities underwritten corporate bonds in Zhejiang totaling 37.35 billion yuan. From June 2012 to October 2013, when Sun Mingxia worked in Guosen Securities, Guosen Securities underwritten corporate bonds in Zhejiang totaling 21.2 billion yuan.