Illegal fundraising exceeds more than 100 billion yuan, the first trial of the "Hehe series" illegal fundraising case begins.

From November 19th to 20th, 2025, the Second Intermediate People's Court of Shanghai publicly held a trial of the defendant entities and joint venture Asset Management Co., Ltd., Shanghai Hehe Enterprise Management Co., Ltd., Shang Zhi Fengyuan Fund Sales Co., Ltd., as well as defendants Lin Qiang, Zhang Zhenjie, E Changjun, Liang Jiaming, Ye Gang, Wang Hongliang, Cao Wei, and Zhang Chun on charges of fundraising fraud, illegal absorption of public deposits, money laundering, and other related cases. The prosecution alleges that from January 2019 to August 2023, Lin Qiang, while actually operating the defendant company "Hehe System," colluded with Zhang Zhenjie, E Changjun, Liang Jiaming, Ye Gang, Wang Hongliang, Cao Wei, Zhang Chun, and others to violate laws and regulatory documents such as the Securities Investment Fund Law of the People's Republic of China and the Regulations on the Private Equity Asset Management Business of Securities and Futures Operation Institutions. Knowing that the "Hehe System" company was not approved by the national financial regulatory authorities, they engaged in activities such as issuing fictitious investment bills for discounting, promoting through sales outlets and product introduction meetings, and enticing investors with promises of annualized returns of 6% to 10.5%. They illegally issued and sold financial products through methods such as splitting private wealth management products into multiple periods for rolling issuance, allowing investors to pool funds to purchase, illegally raising more than 100 billion RMB from the general public, failing to repay more than 30 billion RMB in principal, and using most of the raised funds to repay principal and interest, and a small portion for company operations, external investments, and personal spending.