The China Securities Regulatory Commission has issued a massive 5.67 billion yuan (US$900 million) penalty, the largest amount ever, to Beibadao Group and its controller Lin Qingfeng and his daughter, who allegedly leveraged capital and manipulated shares with multi-accounts, Yicai.com reported.
The investigation showed that from February to May 2017, Beibadao Group had formed a team to speculate on the stock market.
The company raised billions of yuan through multiple fund-raising intermediaries, and used more than 300 trading accounts to frequently trade with abnormal techniques, such as raising the stock price quickly to reach the day limit. They profited approximately 945 million yuan from such manipulations, the report said.
Lin started out in the logistics business and was once the controller of the largest private railway container operator in China. In 2014, his logistics company was revealed to have illegally transported coal for eight years, in order to carry out a large capital accumulation.
Since 2012, the Beibadao Group immersed itself in the financial industry and began to commit further irregularities.