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To fund those ventures, LeEco borrowed billions of dollars from investors, with Jia using his own shares in Leshi Internet as collateral to secure funds from securities brokerages.
The rule stems from the Internal Revenue Code, not from securities laws.
He referred to the Depression-era law that kept banks separate from securities businesses.
Liquidity instantly drained from securities firms as clients abandoned anything with a whiff of risk.
The likelihood that Zeneca and Astra would combine won applause from securities analysts and investors.
Revenue fell 3percentto to $3.21 billion, largely because of a loss from securities sales.
And income from securities trading rose 49percentto to 5.4 billion francs.
He pleaded guilty to two felonies and was subsequently barred from securities trading.
The deal also involved some of the issues now drawing attention from securities regulators.
The company said it expected to face "sanctions and penalties" from securities regulators.
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Thats because the revenue pulled in from securities lending is greater than the management fee.
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