Involved in the crime of insider trading under the Securities and Exchange Act, a 10-million-dollar female director of China Electronics was interviewed and asked to pay a million-dollar bail. Lawyer Li Yusheng explained the relevant legal issues.

🚩Lawyer Li Yusheng was interviewed by Mirror News

A multi-million CLP female director involved in insider trading was interviewed and asked to post a million-dollar bail
Reporter | Photography by Zheng Huiliang | Liu Weiting

Zhou Lizhen, the female director of China Electric Appliances, a listed company that produces lighting fixtures, was accused of trading stocks during a prohibited trading period after the company released major news in 2020, and was suspected of insider trading. On the 24th, the inspection team conducted multiple searches. After interrogation, he was ordered to post a bail of 1 million yuan. It is worth noting that this is not the first time that this female director has been investigated for a case. In 2016, she was suspected of hollowing out the company and was severely sentenced in the first and second trials. The criminal lawsuit is still under trial.

Wearing a fisherman's hat and lowering her head, she slowly walked out of Beijing Examination without saying a word when asked questions. She was Zhou Lizhen, the female director of China Electric Appliances, a listed company. The female director was accused of insider trading because the investigation found that in 2020, she took advantage of the company's release of major news to trade stocks during the legally prohibited period, making tens of millions of illegal profits. After an overnight retrial, he was finally released on bail of NT$1 million pending trial.

China Electric Appliances, which owns the East Asia lighting brand, is a long-established local lighting equipment manufacturer, but its female director was suspected of insider trading. This is not the first time she has made news. In 2016, Zhou Lizhen walked haggardly into a prison car under guard. In the past, she had embezzled hundreds of millions of company funds. She was sentenced to 12 years in the first trial and was commuted to 9 years in the second trial. The lawsuit is still under trial.

Li Yusheng, the company's legal counsel, said: "If the criminal proceeds exceed 100 million yuan, you may even be sentenced to more than 7 years in prison, and most importantly, you will also be fined 500 million yuan."

Established listed companies have been subject to numerous lawsuits and disputes in recent years, almost all of which involve families filing lawsuits against each other as they compete for management rights. In 2016, former chairman Yan Ganlin accused current chairman Zhou Lizhen, who is also his niece, of alleged hollowing out. The case of the well-known East Asia Lighting Co., Ltd.'s hollowing out of the executive suite has been controversial, and now insider trading has been revealed, which may once again severely damage the brand's image.

🔽Related news links🔽
▪Mirror News
A multi-million CLP female director involved in insider trading was interviewed and asked to post a million-dollar bail

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