Recently, more than a dozen civil rulings released by the China Judgment Documents Network show that multiple investors have sued Beijing Jiayi Wealth and its fund manager Li Wendong.

What happened is that in 2017, investors bought the private equity funds he managed, but suffered losses a year later. Fund manager Li Wendong promised that if the investors did not redeem the fund within the next three years, he would In his own name, he guarantees that the net value of the fund will return to more than 1 yuan, otherwise he will be responsible for making up the amount to investors to 1 yuan.

However, the agreed three years have come. By 2021, some investors have lost 982,900 yuan for 1 million yuan, and some investors have lost 91.2% after four years.

In fact, Beijing Jiayi Wealth has been deregistered as a private equity manager in June this year. In August last year, the company’s fund manager Li Wendong promised investors to protect capital and profits. Violations such as publicity and promotion will be supervised and issued warning letters.

The fund first paid dividends, then the net value plummeted

Investors lost more than 91% after holding it for 4 years

According to the civil ruling, Mr. Li from Beijing in 2017 On June 2, through the introduction of fund manager Li Wendong, the "Jiayi-Private Equity Academy Elite No. 322 Fund Contract" was signed with the fund manager Beijing Jiayi Wealth Investment Management Co., Ltd. and the fund custodian China Merchants Securities to subscribe for Jiayi-Private Equity Academy Elite No. 322 Fund Class A shares, the subscription amount is 1 million yuan.

The fund was established and started operating on June 19, 2017, with an initial net unit value of 1 yuan. On November 14, 2017, Mr. Li used the dividends from Jiayi No. 322 Fund to subscribe for the fund, and confirmed that the subscription share was 459,800 shares; so far, he holds a total of 1,459,800 shares of Jiayi No. 322 Fund.

However, later, the net value of the fund units continued to fall. During this period, Mr. Li repeatedly called Li Wendong to inquire about the investment situation of Jiayi No. 322 Fund and the reasons for its continued decline. However, Li Wendong never disclosed the specific investment direction of the fund. Instead, he hoped that investors would continue to hold it and guaranteed that the net value of the fund would return to more than 1 yuan. .

In the context of the fund's losses, Mr. Li received the "Supplementary Agreement for the Top Nine Series Private Securities Investment Funds" signed and issued by Li Wendong on December 2, 2018.

In the "Supplementary Agreement", Li Wendong promised that investors of the top nine series of private securities investment funds, including investors of Jiayi No. 322 Fund, will not make any investment within three years starting from December 2, 2018. For fund redemption, Li Wendong guarantees in his personal name that "the net value of the fund will return to more than 1 yuan by the end of three years starting from December 2, 2018." If the net value of the fund cannot return to 1 yuan by then, Li Wendong will be responsible for making up to 1 yuan for each investor. 1 yuan.

However, three years have passed. From December 2, 2018 to December 15, 2021, the net value of a unit of Jiayi No. 322 Fund has never exceeded 1 yuan.

In this regard, Mr. Li entrusted a lawyer to send a "Lawyer's Letter" to Li Wendong, requiring him to pay him a supplementary payment before December 19, 2021 in accordance with the commitments in the "Supplementary Agreement", but Li Wendong did not respond.

This fund suffered serious losses. On December 20, 2021, Mr. Li applied to redeem all 1.4598 million shares of Jiayi No. 322 Fund he held. The net value of the fund unit at the time of redemption was 0.088 yuan. The redemption amount received was 128,500 yuan. In other words, the fund's loss reached 91.2% in four years of operation.

1 million principal lost 982,900 yuan

Investors questioned the fund manager’s operations

Investor Ms. Song was in a similar situation. In November 2017, she On the 16th, the "Nine Strong Sub-New Growth No. 1 Private Securities Investment Fund Fund Contract" was signed with Beijing Jiayi Wealth, and the fund was subscribed for 1 million yuan. The initial face value of the fund share is 1 yuan.

However, after the fund suffered losses, Li Wendong also signed a "Supplementary Agreement" with Ms. Song, promising that if Ms. Song did not redeem the funds within three years from December 2, 2018, Li Wendong would Guarantee in the name of an individual that "the net value of the fund will return to more than 1 yuan by the end of three years starting from December 2, 2018." If the net value of the fund cannot be restored to 1 yuan by then, Li Wendong will be responsible for making up to 1 yuan for Ms. Song. After the top-up, fund investors can redeem it.

Of course, three years later, Ms. Song did not redeem the fund, but as of December 2, 2021, the fund she held had not restored its net value to 1 yuan. She contacted Li Wendong many times and asked to pay investment losses in accordance with the supplementary agreement, but Li Wendong has always avoided seeing her.

The fund held by Ms. Song also suffered heavy losses. At that time, the net value of the fund had dropped from 0.0314 yuan to 0.0171 yuan, and the investment loss had reached 982,900 yuan. In other words, the fund's loss reached 98.29%.

In addition, according to the "Supplementary Agreement" provided by the investor Mr. Cao, it is mentioned that if within three years from December 2, 2018, the net value of the fund has not returned to 1 yuan, As mentioned above, if fund investors want to redeem the fund at this time, the redemption process will be carried out completely in accordance with the fund contract. Li Wendong is not responsible for "compensation for investment losses if the net value of the fund is less than 1 yuan."

The "Supplementary Agreement" also states that in the next three years, fund investors shall not interfere with the operations of fund manager Li Wendong, so that Li Wendong can operate the top nine series funds from a strategic perspective and operate smoothly A potential bull market in the future.

However, the fund ultimately failed to seize market opportunities and suffered heavy losses.

Investor Mr. Cao questioned that the stock market from December 2018 to 2020 was full of structural conditions. The performance comparison benchmark in the industry, the CSI 300, had a return rate of 36.7% in 2019 and a return rate of 27.2% in 2020. %, the return rate in 2021 is -5.2%, and the median return rate of public funds is generally above 20%. As a professional private equity management institution, such a return is obviously not in line with the general market trend, and it seriously deviates from the performance of its peers and violates the Industry knowledge, "It is inevitable to make people doubt whether it has performed its responsibilities with integrity and whether it has seriously damaged the interests of fund holders, embezzled or misappropriated fund property, and transferred benefits."

After review, Beijing The Haidian District Court held that on December 2, 2018, the Supplementary Agreement signed by Li Wendong and the above-mentioned Ms. Song stipulated that in order to ensure the vital interests of investors of the Nine Strong Series Private Securities Investment Funds and to ensure that the Nine Strong Series Private Securities Investment Funds Future operations can operate more healthily in order to maximize future investment returns. Mr. Li Wendong, manager of the Nine Strong Series Private Securities Investment Funds, decided to sign the following agreement with all investors of the Nine Strong Series Private Securities Investment Funds:

1. Investors in the top nine series of private securities investment funds will not make fund redemptions within three years starting from December 2, 2018, before the net value of the fund returns to 1 yuan. Mr. Li Wendong guarantees the "net value of the fund" in his personal name. Counting from December 2, 2018, it will return to more than 1 yuan by the end of three years." If the net value of the fund cannot be restored to 1 yuan by then, Mr. Li Wendong will be responsible for making up the amount to 1 yuan for each investor. After the amount is made up, fund investors can redeem it. The supplementary agreement contains the personal signatures of Li Wendong and Ms. Song. Judging from the content of the above-mentioned supplementary agreement and the signatories, the supplementary agreement is a personal guarantee provided by Li Wendong for the money invested in the fund involved in Song Lihua's subscription case, so the nature of the supplementary agreement should be a guarantee contract. Song Lihua also stated that the "Supplementary Agreement" is a separate guarantee contract. According to Article 19 of the Guarantee Law of the People's Republic of China, "If the parties have not agreed on the method of guarantee or the agreement is unclear, they shall bear the guarantee liability in accordance with the joint liability guarantee." The above supplementary agreement did not agree on the method of guarantee. , so according to the above-mentioned legal provisions, the guarantee method should be joint and several guarantee.

According to Article 22, Paragraph 1, of the Civil Procedure Law of the People's Republic of China, "If the defendant's domicile is inconsistent with his habitual residence, the People's Court of the place of habitual residence shall have jurisdiction." The case was transferred to the Xicheng District People's Court of Beijing for processing.

Jiayi Wealth has been deregistered as a private equity manager

Li Wendong was issued a warning letter by the Beijing Securities Regulatory Bureau

Public information shows that Beijing Jiayi Wealth Investment Management Co., Ltd. The company was established on March 3, 2011, with a registered capital of 10 million yuan. The company's major shareholder and legal representative is Ma_. It is worth noting that on June 24 this year, Beijing Jiayi Fortune was deregistered as a private securities investment fund manager due to abnormal operations.

On August 25 last year, the Beijing Securities Regulatory Bureau issued two administrative supervision measures, issuing warning letters to Beijing Jiayi Wealth and its fund manager Li Wendong respectively.

Specifically, after investigation, Li Wendong, the manager of Jiayi Wealth Fund, committed the following violations: 1. Arranging non-company employees to receive investors, etc., reflecting a failure to fulfill the obligation of prudence and diligence; 2. Passing Promote and promote to unspecified targets through WeChat public accounts and other methods; 3. Promise investors that the investment principal will not be lost or promise minimum returns.

The Beijing Securities Regulatory Bureau stated that Li Wendong’s above-mentioned behavior violated the provisions of Articles 4, 14, and 15 of the "Interim Measures for the Supervision and Administration of Private Investment Funds". In accordance with the provisions of Article 33 of the "Interim Measures", it was decided to take administrative supervision measures by issuing warning letters.