DeHeng Successfully Secured Non-Prosecution Decision in Insider Trading and Insider Information Leakage Case
2025-09-15
Recently, in a major, complex, and difficult case involving alleged insider trading and insider information leakage, DeHeng lawyers conducted multiple rounds of communication with the lead prosecutor and submitted professional legal opinions, and the procuratorate lawfully decided not to prosecute three days after holding a hearing.
At the initial stage of the case, the client had already undergone administrative investigation by a local securities regulatory bureau. Subsequently, the China Securities Regulatory Commission transferred the case to the Ministry of Public Security, which assigned it to the economic crime investigation department of a municipal public security bureau for filing and investigation. The investigative authorities believed that during the sensitive period of insider information, the client had repeatedly communicated with others, made contact with individuals possessing insider information through third parties, and controlled accounts to suddenly purchase tens of millions of yuan worth of the involved stocks, resulting in profits of approximately RMB 5 million. DeHeng assigned lawyer Dai Tiehao as the lead counsel and lawyer Wang Bo as co-counsel, who communicated with the prosecutor on multiple occasions, presenting professional legal opinions for non-prosecution from multiple dimensions, including the subject of insider trading and insider information leakage, the characteristics of insider information, the connection of criminal intent in the transmission of insider information, and various reasonable explanations for abnormal securities trading behavior. The prosecutor carefully considered the defense arguments, and the case was returned to the investigative authorities for supplementary investigation. Subsequently, multiple professors from China University of Political Science and Law and Renmin University of China were invited to participate in a hearing for full discussion. Ultimately, the procuratorate, in accordance with Article 175, Paragraph 4 of the Criminal Procedure Law of the People’s Republic of China, decided not to prosecute the client.
