Leshi fined 240 million yuan for IPO fraud and illegal information disclosure

The brokers, audit firms, and law firms helped LeTV with the listing will also be held accountable

Photo from CFP.

Photo from CFP.

By KE Da


Leshi Internet Information & Technology Group, the delisted Chinese technology company, received a fine of 240 million yuan (US$ 35.1 million) from the China Securities Regulatory Commission on Monday, according to a statement issued by the company.

The commission said Leshi had frauded the investors while issuing its shares and breached the rules on information disclosure.

According to the H1 report of Leshi, the company has a negative net asset of 14.6 billion yuan, which means there is no way for the company to pay the penalty.

The commission only mentioned the penalty on Leshi. But according to lawyer LI Xiujiao, securities fraud cannot be done by a single company without brokers, audit firms, and law firms.

A former regulator who preferred not to be named told Jiemian News exclusively someone will be held responsible for such a major case. The former regulator said some responsibilities associated with the case have been addressed, Leshi’s financial intermediary may also face a fine.

Several lawyers have confirmed with the reporter that they have received requests to claim for compensation from people who invested in Leshi’s shares.