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The illegal scheme ran until 2023 and involved brokerage rebates amounting to $16 million. Of this sum, Li Cheng pocketed almost $3 million. The investigation, published by MyDrivers, reveals that payments were channeled through China Merchants Securities (CMS). Li Cheng’s accomplice was Meng Pengfei, a former CMS manager at the Shenzhen branch. Despite brokerage firms being prohibited from returning commissions to clients, illegal payments continued to total 118 million yuan ($16 million).
Li Cheng became richer by 20 million yuan, with Meng taking the lion’s share of $11 million. Liu Huan, CMS’s private wealth executive, received an additional 10 million yuan ($1.37 million) as a thank-you. Authorities eventually uncovered this scheme and arrested Li Cheng. High-Flyer Quant stated that Li Cheng acted in a personal capacity and denied any involvement from the company.
Since DeepSeek is entirely funded by High-Flyer Quant, its reputation could be tarnished due to executive greed. Liang Wenfeng, CEO of DeepSeek and co-founder of High-Flyer Quant, might also face questions about this scandal. However, as the report does not mention him, it’s likely that Li Cheng will receive a significant sentence.
**News Source:** MyDrivers (https://news.mydrivers.com/1/1067/1067263.htm)
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How much money did Li Cheng pocket from the illegal scheme involving brokerage rebates?
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