In 2024, Ma Hongwei Partner’s legal team from Dacheng Shanghai undertook a full-process securities compliance case arising from financial fraud at a listed company. Within only one year, they achieved precise isolation of criminal risks and comprehensive resolution of civil claims.

​​I. Case Background​​
A director of the board and general manager of a listed company faced administrative penalties from the China Securities Regulatory Commission (CSRC) for information disclosure violations and was identified as the directly responsible supervisor. The involved amount significantly exceeded the criminal case-filing threshold, exposing the individual to substantial criminal prosecution risks. Concurrently, investors continuously filed civil compensation lawsuits for securities misstatement, with potential claims totaling over RMB 100 million.

​​II. Case Outcomes​​

1. Achieved complete exclusion of criminal liability for the client despite the case having been formally transferred for criminal prosecution, resulting in exemption from criminal punishment.
2. Through courtroom defense, successfully compelled all investors to voluntarily withdraw lawsuits against the client, achieving comprehensive resolution of civil compensation risks.

III. Case Highlights​​
​​(I) Forward Risk Assessment: Constructing Criminal "Firewalls"​​
Administrative penalties mark merely the beginning in securities cases, with criminal risks looming perpetually. The legal team conducted an in-depth deconstruction of the case’s core issues, leveraging precise foresight and professional guidance to successfully isolate criminal risks at the nascent stage.

• Conducted comprehensive scanning of criminal risks, evaluated the client’s criminal liability exposure, and formulated a reasonable, lawful, and detailed response strategy leveraging evidentiary vulnerabilities.
• Guided the client to understand criminal procedures and rights boundaries, ensuring legally compliant and well-substantiated cooperation during investigations to prevent risk escalation.
• Enabled law enforcement authorities to fully comprehend the client’s role in the case, achieving complete exclusion of criminal liability.

(II) Strategic Exercise of Procedural Rights: Breaking Information Barriers​​
When risks materialized, the client had resigned from the listed company and lost access to internal corporate documents. Failure to promptly review administrative penalty case files resulted in severe information asymmetry. The legal team adeptly utilized procedural mechanisms to dismantle information barriers.

• Promptly initiated administrative reconsideration, leveraging the right to access case files under reconsideration procedures not to overturn penalties but to activate evidentiary discovery mechanisms.
• Comprehensively obtained and reviewed case files, accessing and copying critical evidence including CSRC investigation records, witness transcripts, and internal corporate approval documents.
• Transferred and applied evidence to criminal and civil proceedings, extracting key proof that other corporate entities controlled information disclosure to sever individual liability.

(III) Victorious Litigation: Resolving Civil Claims Exceeding RMB 100 Million​​
Following administrative penalties, civil compensation lawsuits emerged successively. With claims escalating continuously, preliminary assessment indicated total exposure potentially exceeding RMB 100 million. The legal team meticulously dissected the cases and launched precise multi-dimensional counterarguments.

• Conducted thorough analysis of market volatility factors, demonstrating the absence of direct and necessary legal causation between investors’ losses and the fraudulent acts.
• Fully invoked the "non-systematic risks" defense, utilizing market data and industry reports to persuasively establish that contemporaneous market-wide declines and other non-company-specific factors constituted the primary causes of losses, substantially undermining plaintiffs’ claims.
• Efficiently promoted settlement breakthroughs. While fortifying legal defenses, actively coordinated with the listed company to secure partial case reconciliations, significantly reducing the client’s personal compensation burden.
  All high-value claims concluded without any judgments on merits, ending entirely with plaintiffs’ voluntary withdrawal of lawsuits, thereby preventing massive economic losses for the client.

IV. Case Value: Transforming Crises into Opportunities, Demonstrating Ultimate Risk Control​​
This case represents not merely a victory in litigation tactics but a paradigm for corporate executive risk diagnosis and crisis management.

• Precise Identification of "Submerged Icebergs":​​ Penetrated the superficial administrative penalties to anticipate and resolve more lethal criminal-civil cross-over risks.
• Synchronized Dual-Track Victory:​​ Criminal prevention strategies and civil defense tactics operated seamlessly, forming a multidimensional protective network.
• Integration of Commercial Acumen and Legal Expertise:​​ Efficiently resolved disputes through mediation and diversified approaches, maximizing client interest protection.
  In this case, Partner Ma Hongwei’s team constructed a comprehensive risk barrier for the client from administrative, civil, and criminal perspectives through foresight and meticulous strategy. This fully embodies the value of "full-process, integrated" legal services, transforming fragmented legal crises into quantifiable, controllable, and resolvable systematic projects.