Xinhua News Agency, Chongqing, January 1 (Reporters Chen Guozhou and Zhou Wentao) The Chongqing Jiangbei District Court recently pronounced the first "Huabei" cash-out case in Chongqing. Du Moumou, a man born in the 1990s, used Alipay's "Huabei" to cash out more than 4.7 million yuan for others and collected handling fees. The People's Court of Jiangbei District, Chongqing City, ruled that he was illegally operating a fund payment and settlement business, constituting an illegal business crime. He was sentenced to two years and six months in prison and fined 30,000 yuan in the first instance, and his illegal gains were recovered.
According to reports, "Huabei" is an Internet online consumer financial product that provides targeted consumer loan services to registered users of Alipay. It cannot be withdrawn directly and can only be used for consumer payments. In July 2015, Du Moumou and his accomplices purchased Taobao stores and used false transactions to help others cash out from "Huabei" and charged the cashiers a handling fee of 7% to 10% of the cash out amount. From November 10 to 13 of the same year, Du Moumou and his associates colluded with many Taobao users across the country to conduct more than 2,500 fictitious transactions, cashing out a total of more than 4.7 million yuan, of which Du Moumou made a profit of more than 6,000 yuan.
The Jiangbei District People's Court of Chongqing held that according to the State Council's "Measures for the Suppression of Illegal Financial Institutions and Illegal Financial Business Activities", no unit or individual may engage in financial business activities without the approval of the People's Bank of China in accordance with the law. Du Moumou, together with others, ignored national laws and did not make profits through normal operation of Taobao stores. Instead, he made profits by earning cash-out fees. He was illegally engaged in fund payment and settlement business without the approval of the relevant national competent authorities and should be punished for the crime of illegal business operations. Accordingly, the court made the above judgment. (over)
