Big data cuts off the black hand of the stock market! The principal offender, the white wolf with empty gloves, illegally made a profit of 100 million yuan.
Cctv newsOn December 31, 2019, the Intermediate People’s Court of Jinhua City, Zhejiang Province pronounced a verdict on a case of manipulating the securities market involving more than 30 people. This is a typical case in which the CSRC and the public security organs have closely cooperated and jointly investigated in recent years, and it is also a major case of manipulating the market with the cooperation of many gangs.
Since May 2017, the criminal gang has used more than 400 stock accounts to maliciously manipulate 8 stocks and earned hundreds of millions of yuan.
The cumulative increase of more than 40% in three months triggers the early warning of the monitoring system.
One morning in August 2017, the staff of the transaction supervision department of the Shanghai Stock Exchange found that a stock market named Dibei Electric was abnormal.
In the three months after the opening of the stock price, the cumulative increase of this new stock exceeded 40%, and compared with the market index in the same period, the deviation exceeded 30%, which triggered a number of warnings continuously.
The staff quickly launched an investigation and found that more than 400 active accounts were trading this stock at the same time, many of which were newly opened accounts.
"As soon as I came in, I began to trade a large number of shares of Dibei Electric. The time for placing orders was very concentrated. When I bought it, the situation was very strong, and when I sold it, it was relatively scattered. This very sophisticated trading technique generally did not appear in the newly opened account."
When these active accounts buy and sell stocks, they all buy in large quantities at the same time and then sell them in batches, and the accounts cooperate tacitly. A large number of abnormal behaviors caused the stock price to fluctuate greatly, so it can be concluded that someone is manipulating the stock price of Dube Electric.
The stock market is abnormal
After inputting more than 400 accounts and more than 1.6 million transaction information into the big data model, the inspection team of the CSRC found that these accounts are concentrated on more than a dozen computers, and sometimes 30 accounts are trading on the same computer.
In the end, a bank account named Luo Xiangcheng entered the inspector’s sight. Luo Xiangcheng’s account is highly related to many accounts, and the most frequent contact with Luo Xiangcheng is Luo Shandong, the legal representative of Hunan Dongneng Group.
"Dead data" turns into "living clues" and no matter how cunning it is, it can’t escape big data.
With the deepening of the investigation, the inspectors further found that the Luoshan gang raised funds of up to 1.08 billion yuan through multiple fund intermediaries.
These funds use abnormal trading methods such as frequent reverse transactions, intraday price hikes, and rapid daily limit closures to make quick money one after another. Not only Dibei Electric, Seagull, Century Tianhong, Dawson and other seven stocks are suspected of being manipulated.
In June 2018, with the deployment of the Economic Investigation Bureau of the Ministry of Public Security, Jinhua Public Security Bureau of Zhejiang Province and the securities supervision and inspection department set up a task force to conduct a joint investigation. The investigation found that the criminal gangs were very cunning. In order to hide people’s eyes and ears, they often went in and out of major hotels across the country, placed orders through wireless networks in public areas, and made multiple transfers and cash deposits, trying to avoid the investigation.
Relying on the big data securities crime judgment system developed in recent years, the task force fully tapped the existing electronic data information and turned "dead data" into "living clues", thus making a breakthrough in the case.
According to Mao Hairong, deputy head of the Second Branch of the Securities Crime Investigation Bureau of the Ministry of Public Security, the securities crime judgment system takes big data technology as the core, effectively integrates data sources of securities transactions, fund details, personnel tracks, communication information and other parties, and realizes the visual superposition analysis of multi-party data, which can intelligently form a judgment report.
Big data tracking account
When the public security organs used big data to track the trajectory information of the people involved, they found a residence in a high-end residential area in Shenzhen. This house worth more than 20 million yuan does not match the identity of the "migrant workers" involved. The task force suspected that this was a trading point, so it followed the trail and continued to dig deep.
In July 2018, after close monitoring and analysis, the time for closing the network was ripe. The public security organs mobilized more than 280 police officers, and together with more than 30 professional investigators from the securities regulatory department, they went to eight cities including Chengdu and Wuhan to arrest at the same time, and seized hundreds of computers and a large number of mobile phones and other trading equipment.
The "old partner" who once cooperated with each other was arrested and actually dismantled each other.
The investigation found that in this case, the suspect Luo Shandong was responsible for manipulating the stock account and directing centralized buying and selling; Gong Shiwei is mainly responsible for providing capital allocation and also participating in manipulating transactions; He Zhihua acted as the "Darkmouth" of the stock market, recommending stocks and attracting retail investors to buy them.
Luo Shandong, who has worked in real estate and opened a coal mine, made an illegal profit of 187 million yuan in the stock market only by manipulating a stock of Dibei Electric!
What is even more surprising is that Luo Shandong is almost empty-handed when manipulating such large-scale funds. Most of the principal of stock manipulation comes from private fund-raising companies, which provide a large amount of funds for Luoshan East and collect commissions from them.
At present, the public security organs have arrested 26 suspects, including Luo Shandong and Gong Shiwei, and taken compulsory measures according to law. How do they jointly manipulate multiple stocks? In front of the camera, the "old partners" who once cooperated tacitly began to tear each other apart.
The principal criminals tear each other apart in front of the camera
Gong Shiwei, who is in charge of providing capital allocation, said: "Luoshan is a pit friend. Looking for a young, aggressive and risk-resistant person, he tricked us into appearing as a big brother and felt that he could be trusted. I was fooled by him at that time, and there were many people in this market who were pitted by Luoshan East, not just me."
But Luo Shandong didn’t think so, saying that Gong Shiwei was also involved in stock trading. According to the investigators, Gong Shiwei, a fund-raising agent, has dozens of accounts, with the amount of each account ranging from hundreds of thousands to tens of millions. He provides fund-raising for Luoshan in a ratio of 1:4 or 1:5, and after collecting a high margin, he operates the trading of these accounts according to the requirements of Luoshan.
In order to avoid a large number of selling without receiving the goods, Luo Shandong also specially found people who recommended the stocks, so that they could spread the news that Dibei Electric was promoted by the dealers to the market and attract retail investors to enter the market.
The criminal suspect He Zhihua played the role of pushing the ticket "Darkmouth". He said: "This interest temptation is great, and it is millions to earn at every turn." Originally in the tea business, he couldn’t stand the temptation of huge commission and became a "Darkmouth".
The French open is long, sparse and not leaking. Especially in today’s rapid development of big data technology, any illegal behavior is hard to hide. And this case also warns people that "making a steady profit with Zhuang" is the marketing rhetoric of Darkmouth’s elaborate scam, and there are not so many good things in the market. (Text/Dong Shuyun)