Why did a star enterprise collapse quickly after a failed overseas acquisition? The coming court hearing is expected to fully solve the mystery and bring some reflection to the business community. At the end of July 2020, the reporter of China business daily learned from relevant departments that Feng Xin, the founder of Fengfeng Group (300431. SZ), had been prosecuted to the court and charged with bribery to non-state staff. Windstorm group, which has created 36 consecutive limit board miracles in the stock market, fell into a dilemma immediately after it failed to acquire MPs, a British sports copyright company. Feng Xin was taken away by the police on suspicion of committing a crime in July 2019. In addition, the reporter learned from Feng Xin’s family members and colleagues that the above accusations were directly related to some specific operations when purchasing MPs. It is also understood that recently, Feng Xin filed a complaint with the second branch of Shanghai Municipal People’s Procuratorate, involving the past of a 100 million yuan fund being “defrauded” by its subordinates. Similarly, this incident also happened in the acquisition of MPs. “[Feng Xin] can be cheated out of 100 million yuan by his subordinates, and it was not long ago that (he) knew about it.” Relatives said that on this matter, we can also see some characteristics of Feng Xin’s personal character and enterprise management. Li Xiaomeng, Feng Xin’s defense lawyer and director of the criminal Department of Beijing Dayu law firm, confirmed to the reporter that the fraud was true, and that Feng Xin himself had filed a complaint with the procuratorate to investigate the criminal responsibility of the relevant personnel. Up to the time of publication, the relevant courts and procuratorates have said that the public information shall prevail, and they have not accepted this newspaper’s interview. < p > < p > on the evening of July 28, 2019, Fengfeng Group announced that the actual controller, Feng Xin, “was taken compulsory measures by the public security organs for suspected crimes, and the relevant matters need to be further investigated by the public security organs.”. The announcement also stressed that the company operates normally. However, on July 8, 2020, Fengfeng Group was suspended from listing due to failure to submit the annual report in 2019 on time. < / P > < p > investors want to know why this star company, which has created 36 consecutive limit board miracles, is here? Judging from the past public opinion, the main reason for its rapid collapse is the acquisition of MPS: after listing in 2015, Fengfeng Group started the acquisition plan of MPs, a famous British sports copyright company, in 2016, but MPS was finally declared bankrupt and liquidated by the British court at the end of 2018. Since then, because the Jinxin fund used for the acquisition failed to exit as planned, Fengfeng Group itself was affected 。 < p > < p > an employee said in an interview with our reporter that after obtaining 350 million yuan of capital with stock pledge, Feng Xin made internal guarantee and external loan, and found a shell to borrow his name. The specific operation was in the charge of Jiang jianeng, subordinate of Liu Yang, the director of investment department. According to relevant evidence, after replacing 100 million yuan of investment by providing subsidies to the manager, Jiang jianeng finally transferred it into the account controlled by his personal or relatives through layer by layer transfer. What’s more surprising is that in this process, even Liu Yang did not find anything different. It was not until the later reconciliation that 100 million yuan was missing. < p > < p > “the funniest thing is that when Feng Xin found out about this problem, he arranged for his assistant to ask Jiang jianeng, but Jiang jianeng actually made him black. It was not until recently that we followed up on the case of Jiang jianeng that we understood how the money went and where it eventually went. However, the Procuratorate’s charges against Jiang Canon did not include the charge of “fraud.” Feng Xin’s relatives said that after learning from Feng Xin, Feng Xin had no idea about it. As a result, Feng Xin asked the procuratorial organ to sue Jiang jianeng for fraud as a victim. Li Xiaomeng, a lawyer, confirmed to reporters that he had submitted a complaint to the Procuratorate on behalf of Feng Xin, pointing out that there was a major “omission” in the Jiang Canon case, that is, the fraud involving 100 million yuan. < / P > < p > “we suspect that after the police investigation, or when transferring the case for prosecution, we accidentally missed it. But such an obvious thing can’t be said. ” Feng Xin’s relatives said. It is also understood that Jiang jianeng’s bribery case has not yet been heard. Feng Xin hopes to join Liu Yang, Jiang jianeng and Xiang Tong in the trial. It is understood that Jiang jianeng provided subsidies to relevant parties, which was considered by the prosecution as bribery. However, what is controversial in this case is that both internal guarantee and external loan, as well as shell borrowing, are commonly used “structures” for Chinese enterprises’ overseas acquisitions in recent years, and the provision of so-called subsidies is also the same as industry regulations. < / P > < p > “we think that there is a problem with this logic. All the enterprises that have purchased overseas in recent years have done so. In this process, there are all these operations. If the acquisition fails, they will be punished with bribery. How many business owners will be jailed for this? That would be a lot. ” Feng Xin’s relatives said. However, judging from the content of the charges, Liu Yang and Jiang jianeng of Fengfeng Group were all charged with bribery to non-state staff. The bribery parties are all related enterprises in the process of acquisition. The reporter learned that this is also the only charge against Feng Xin, and the amount of money suspected of the crime was determined to be 4.2 million yuan. According to people familiar with the matter, Feng Xin’s case was filed with the people’s Court of Jing’an District of Shanghai in mid July. Lawyer Li Xiaomeng also confirmed this point to reporters. He also disclosed that Feng Xin and his defense lawyers would plead innocence at the trial stage because he believed that the current accusation was “an error in the determination of facts and the application of law”. It is understood that earlier, the police had investigated Feng Xin and others on suspicion of duty embezzlement, believing that the relevant personnel embezzled the funds of Fengfeng Group in the process of acquisition. However, the crime was not prosecuted after it was examined by the people’s Procuratorate of Jing’an District of Shanghai, and was returned for supplementary investigation twice and the time limit for examination and prosecution was extended twice. According to the lawyer’s introduction, Feng Xin was accused of instructing the relevant personnel of Fengfeng Group to bribe 4.2 million yuan to fund managers and relevant personnel of fund investment institutions in order to avoid supervision of related party transactions and information disclosure of major matters in relevant fund investment projects, and Feng Xin was believed to be the main culprit. According to relevant laws and regulations, Feng Xin will face more than three years’ imprisonment if the suspected charge is finally determined by trial. “Compared with the matters of the investigation organs, the indictment has reduced Feng Xin’s suspected job embezzlement of more than 50 million yuan, and the amount of bribes paid has been reduced from more than 28 million yuan to 4.2 million yuan.” Relatives said that although this is worthy of recognition, they believe that the current charge of bribery is not tenable. However, the trial of this case is expected to review many details of the acquisition of MPs, and the internal management of Fengfeng Group under the rule of Feng Xin will be more carefully restored. < / P > < p > “100 million yuan was cheated away and disappeared, but they were not found in time, but they were blackmailed by their subordinates after questioning. Such things also reflect some problems.” Storm Group employees said. < / P > < p > as a well-known big man in the industry, Feng Xin founded Fengfeng Group after acquiring Fengfeng audio and video in 2007. After listing in 2015, he sought to acquire MPs to occupy the upstream content in 2016. This plan was highly recognized by the capital. However, in October 2018, the British court announced the bankruptcy and liquidation of MPs, which immediately led to the failure of the fund to withdraw as planned. It is understood that after Feng Xin was taken away by the police, the relevant audit of Fengfeng Group could not be carried out normally, resulting in the failure to submit the 2019 annual report at the end of June, so the Shenzhen Stock Exchange announced that its listing was suspended. < p > < p > according to public information, Feng Xin has won important industrial honors such as “top 10 people of the year in ZhongGuanCun” and “top 10 new sharp figures in China’s new media”, and won the third prize of Beijing Science and Technology Award in 2014.