A Bond Fraud Case Represented by DeHeng Lawyers Selected as Guiding Case No. 219 by the Supreme People’s Procuratorate (Theme: Securities Crimes)

2025-02-26

The case of “Company A Leather Co., Ltd. and Zhou XX et al. on Bond Fraud,” represented by the team led by lawyer Chu Wenshu from DeHeng’s Shanghai Office, has recently been selected as one of the 55th batch of guiding cases (Case No. 219) on securities crimes by the Supreme People’s Procuratorate. This selection fully demonstrates DeHeng’s professional strengths and outstanding achievements in the field of financial crimes. 

In the second half of 2012, Zhou XX decided that Company A Leather Co., Ltd. (hereinafter referred to as “Company A”), based in Suqian, would issue private bonds for financing. He commissioned Wang XX to conduct the on-site audit work for the bond issuance. Since the company’s actual financial status did not meet the bond issuance requirements, Wang XX suggested adjusting the financial statements, and subsequently created false audit working papers based on the fabricated information.

On February 5, 2013, the private bonds were issued and registered with the Shenzhen Stock Exchange, raising a total of RMB 150 million. When the bonds matured on February 5, 2015, Company A was unable to repay the principal and remaining interest, causing significant economic losses to investors. 

In 2018, lawyer Chu Wenshu accepted the mandate from Wang XX and provided defense for his alleged bond fraud crime. She presented professional defense opinions to the procuratorial authorities on aspects such as the determination of Wang XX’s subjective and objective facts, the amount involved, legal application, and sentencing considerations, and engaged in thorough and professional communication with the procuratorate. Ultimately, she successfully secured a lighter sentence for Wang XX, achieving an effective defense that mitigated his criminal liability and safeguarded the defendant’s lawful rights and interests.