The Chinese government held this week Criminal trial against Peter Han and Sie Yong. Have the defendants pleaded guilty?
23 March, AtoZForex – The Chinese Forex industry has been a dreamland for every possible Forex broker. Some brokers went over their capacity, and established rep offices and some keeps on having online presence from their overseas offices.
As long as these operations go smoothly, there generally is no major issue. However, once you delay withdrawal, or do something not right, trust me, you will be raided by an angry mob.
Criminal trial against Peter Han
The long arm of the Chinese government has caught up with Peter Han and Sie Yong. Based on the information AtoZForex has collected, Han Xinghui, also known as Peter Han joined IronFX in November 2010 from FXPro. Working on the Chinese market development Han left IronFX Global in March 2014 to become CEO of one of IronFX main Introducing Brokers in China, International Global Holdings Group (IGHG).
Both former IGHG officials faced the criminal trial in Shanghai Pudong District Court yesterday, on the 22nd of March for personally defrauding clients. Meanwhile, it is worth mentioning that this trial is for personal accusations against Peter Han and Sie Yong. Officially, neither IronFX or any of its officers has ever been indicted at a Chinese Court.
According to the publicly made minutes of the court hearing, both Peter Han and Sie Yong have pleaded guilty to the indictments and charges pressed by the court. The minutes of the Criminal trial against Peter Han and Yong reveals:
The Judge: “The defendant 1 (Peter Han) on prosecution, is accused of being guilty of conducting illegal business on behalf of IronFX in China. Do you object?”
Peter Han: “No objection, I plead guilty.”
The Judge: “The defendant 2 (Sie Yong) on prosecution, is accused of being guilty of conducting illegal business on behalf of IronFX in China. Do you object?”
Sie Yong: “No objection, I plead guilty.”
Prosecutor interrogates Peter Han and Sie Yong
When the judge allowed the prosecutor interrogate the defendants, Peter Han explained that IronFX has regulated offices in Cyprus. For China, IronFX had an affiliation with IGHG to provide marketing and support services that do not require licencing. When the prosecutor asked why, Peter Han explained the following in court:
Peter Han: “Initially, me and Yong were working in Cyprus. As Sie Yong wanted to relocate to China, IronFX offered to help us with the setup of an Introducing Broker (IGHG). In March 2014 I left IronFX and became CEO of IGHG”
The Prosecutor continued with questions in regards to the segregation of funds. Especially, how the funds of Chinese IGHG clients ended up abroad. In response to these questions, both the defendants replied:
Peter Han: “I do not know about the segregation of funds. I was only responsible for recruiting staff and to attract customers.”
Prosecutor: “Does the defendant 2 (Sie Yong) know how the client funds flowed to the head office?”
Sie Yong: “No, I do not know about this. I was responsible to assist Peter Han with recruitment of staff, while making arrangements for vacancies and job interviews.”
Peter Han’s IGHG Salary in question
The criminal trial against Peter Han and Sie Yong continued with a lengthy discussion. The questions included the money they have received and their methods, owners of the company and more.
Meanwhile, the Criminal trial against Peter Han and Yong could possibly end with 5 year imprisonment. However, the Judge commented that Han and Yong’s operations could be classified as “Civil Fraud” and is punishable by law. And, if the two were to return the “stolen” capital back to investors and collaborate with the authorities the punishment could be lowered.
What do you think of this case? Share your opinion with us.