Tipping streamers millions, found to be illicit funds upon investigation, recovered!
Compiled from: Jinan Intermediate People's Court
Case review
From December 2018 to April 2020, the defendant Li served as a cashier for a company in Jinan, a subsidiary of a Zhuhai-based firm, and provided financial accounting services for a company in Tai'an City, Shandong Province. During this period, Li exploited the convenience of his position, using the company's bank account payment and verification tokens, and through the SAP enterprise management system, applied for supervised funds, falsely requested fund allocations, and transferred funds, moving a total of 48,264,303 yuan from the accounts of the Tai'an company and a real estate group company into personal accounts.
After embezzling company funds, Li used the illegal gains for tipping streamers, recharging in games, entertainment expenses, and repaying personal loans. Among these, the amount spent on recharging and tipping on live streaming platforms alone exceeded 23 million yuan. By the time the case was uncovered, Li had squandered all the involved funds.
After the case was uncovered, the defendant Li voluntarily surrendered to the public security authorities on May 9, 2020, and truthfully confessed his crimes.
"Criminal Law of the People's Republic of China"
Article 271
Any employee of a company, enterprise, or other unit who, taking advantage of their position, unlawfully takes possession of the unit's property for themselves, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also be fined; if the amount is huge, the sentence shall be fixed-term imprisonment of not less than three years but not more than ten years, and a fine; if the amount is especially huge, the sentence shall be fixed-term imprisonment of not less than ten years or life imprisonment, and a fine.
[1] Court Opinion
After trial, the court found that the defendant Li, taking advantage of his position, unlawfully took possession of the unit's property for himself, with a huge amount, constituting the crime of embezzlement. The defendant Li voluntarily surrendered and truthfully confessed his crimes after arriving at the case, and voluntarily admitted guilt and accepted punishment, so he may be given a lighter punishment according to law.
At the same time, according to Article 11, Paragraph (2) of the Supreme People's Court's "Several Provisions on the Execution of Property-Related Parts in Criminal Judgments," if a third party obtains the involved property for free or at a price significantly lower than the market value, the people's court shall recover it. Li's act of giving gifts and tips to streamers constitutes a legal relationship of a gift contract. While receiving high-value tips, the streamers did not provide corresponding labor, which does not constitute bona fide acquisition and is inconsistent with socialist core values. The illicit funds that the defendant recharged into live streaming platforms fall within the scope of recovery and shall be recovered.
[1] In summary, the court of first instance sentenced the defendant Li to 12 years in prison, confiscated personal property of 800,000 yuan, and ordered the recovery of the illicit funds used for tipping streamers and gifts, which were returned to the victimized unit, with any shortfall after recovery to be compensated by Li within ten days of the judgment taking effect.
[1] The author's perspective
[2] In recent years, online streamers have gradually become a formal profession, with some earning through product promotions and others making money from tips given by viewers. Due to the virtual nature of the internet, fans may be minors or even criminals, which streamers may not be aware of. Over the past two years, numerous cases have shown that even if streamers are unaware, these tip amounts can still be recovered.
[3] Looking at this case, the court of first instance considered that fans tipping streamers constitutes a legal relationship of gift contracts, and since the streamer did not provide labor equivalent to the tip amount of over 23 million yuan, it was not considered bona fide acquisition and was inconsistent with socialist core values. The author finds this somewhat forced, as it is difficult to define the labor provided by streamers through live broadcasts, given the lack of a specific measurement standard in reality, making it hard to set a corresponding price. Moreover, if higher tips to streamers are not considered bona fide acquisition and do not align with socialist core values, then the existence of such a profession as streamers should also be questioned. How should live streaming platforms position themselves?
[4] Of course, from another perspective, the author fully supports the recovery of illicit funds, as Li’s embezzlement of public funds through his position is a criminal act. Such behavior, which harms company interests and disrupts social stability, cannot be tolerated and must be severely punished. The harmed company should receive maximum legal protection. Li has paid the corresponding price, which is well-deserved, and serves as a warning to those with a sense of impunity: the bottom line of the law cannot be crossed!
