Can Tao Hong escape as Zhang Ting and her husband are caught up in pyramid schemes?
Compiled from The Paper
Case review
It is reported that Tao Hong received 420 million yuan in dividends over five years from the Darway company operated by the Zhang Ting couple. Of this, 260 million yuan in dividends over the last three years came from Darway during its multi-level marketing phase. Currently, Tao Hong has requested to withdraw her shares from this multi-level marketing company.
The details of dividends for 3 years are: 0.028 billion yuan in 2018, 0.181 billion yuan in 2019 and 0.059 billion yuan in 2020.
All the dividends of this part were transferred to the wholly-owned and controlled company of Tao Hong. Beijing Zuitaoran Clothing & Accessories Co., LTD. An account opened at China Construction Bank. On April 14th, when a reporter inquired about this matter from Tao Hong's workplace, a staff member responded," I'm not clear about this matter. .
Tianyancha App shows that Tao Hong herself serves as a director and holds about 1.93% of the shares of Shanghai Darwell Trading Co., Ltd. In addition, she also holds about 4.7% of Darwell's shares through Beijing Zui Taoran Garment and Apparel Co., Ltd.
Most Taoran Company was established in May 2004. In May 2017, its investor changed from Tao Ping to Tao Hong, with a 100 per cent stake. It is worth mentioning that the most Taoran has invested in 4 companies. In addition to Darwei, the other 3 companies, including Shanghai Tao Biting Culture Media Co., Ltd., are also related to Zhang Ting and his wife.
"Criminal Law of the People's Republic of China"
Article 224 bis
Crime of organizing and leading pyramid schemes
Whoever organizes or leads pyramid schemes under the guise of selling goods or providing services, requiring participants to pay fees or purchase goods or services to obtain membership, forming a hierarchical structure based on a certain order, directly or indirectly using the number of people recruited as the basis for calculating commissions or rebates, inducing or coercing participants to continue recruiting others, defrauding property, and disrupting economic and social order, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined; if the circumstances are serious, the offender shall be sentenced to fixed-term imprisonment of not less than five years and shall also be fined.
Company Law of the People's Republic of China
Article 4
Shareholders of the company are entitled by law to rights such as asset income, participation in major decision-making and selection of managers.
[1] The author's perspective
After Zhang Ting and his wife’s "TST Secret" was classified as a pyramid scheme, it was recently reported that 96 properties under the company's name were seized. The shareholder celebrity Tao Hong of "TST Secret" has also gradually come into the spotlight. Some media revealed that Tao Hong received 420 million yuan in dividends over five years from Darway Company. Once this news came out, netizens were immediately shocked. It is worth noting that the company's profit at that time was only around 20 million yuan. So, as a shareholder, can Tao Hong emerge unscathed from this pyramid scheme whirlpool?
According to the above-mentioned "Company Law", Tao Hong, as a shareholder, can participate in major decisions and select managers, and from previous media reports, Tao Hong also often advertises "TST Court Secrets", plus With the huge amount of dividends, Tao Hong himself is very likely to be one of the leaders of Darway. If the case is criminally filed, Tao Hong will eventually be subject to criminal sanctions.
From this, it can be seen that in terms of illegal and criminal activities, no matter how famous you are or how well you cover it up, the truth will eventually come to light one day. By then, if you suddenly realize it, it will probably be too late.
