According to a court hearing notice from Wenzhou's Lucheng District Court, FIN STREET SEC is acting as the plaintiff, suing three individuals under the legal cause of "employer liability dispute." The redacted names of the parties involved appear to be connected to historical issues plaguing this brokerage firm.

A new hearing has been scheduled. Previously, we analyzed in an article how FIN STREET SEC (formerly Hengtai Securities) was embroiled as a defendant in numerous lawsuits against individuals involving entrusted wealth management contract disputes.

Now, however, this brokerage has taken on the role of plaintiff, suing three individuals, with the case reason surprisingly being "employer liability dispute."

Qichacha records show a hearing notice: Case No. (2025) Zhe 0302 Min Chu 20347, scheduled for a hearing on February 10, 2026, at the Lucheng District People's Court of Wenzhou City, Zhejiang Province, lists "FIN STREET SECURITIES CO., LTD." as the plaintiff; the defendants are three individuals: Chen**, Zhang*, and Yu**.

It is important to note that China's Civil Code stipulates that if an employee causes harm to others while performing work duties, the employer is liable for tort damages. After compensating, the employer can seek recourse from the employee if there was intent or gross negligence.

This raises the question: what connection do the three individuals sued by FIN STREET SEC have with this brokerage?

A history of severe penalties. The partially redacted names in this case inevitably bring to mind an old case.

In 2018, when the firm was still Hengtai Securities, a major "collective" regulatory violation occurred. Zhang and Chen Jie's team from the Institutional Trading Department, with the acquiescence of then-deputy general manager Yu Mouyi, orchestrated a scheme involving improperly using the company's name to "facilitate" violations: under the guise of a Hengtai Securities capital project, they promised fixed returns to multiple clients for margin-funded stock trading. Without informing clients of the actual use, they handed over account details and passwords to a third party for margin trading. Investigations revealed 35 accounts were used to trade risky stocks like "Oupu Zhiwang" and "Dasheng Culture."

Regulators subsequently determined this action constituted the violation of "a securities company providing clients' capital accounts and securities accounts for use by others." In 2020, the CSRC came down hard: fining Hengtai Securities 1 million yuan; fining Yu Moujie and Chen Mouyi 100,000 yuan each; and Zhang, who cooperated with the investigation, received a lighter fine of 30,000 yuan.

The aftermath of claims. Naturally, the impact of these违规 operations on the brokerage extended far beyond administrative penalties.

According to media reports, because the misappropriated accounts involved a large number of individual investors, subsequent substantial stock price declines led to losses, triggering a wave of密集 compensation lawsuits.

It is particularly intriguing that the aforementioned regulatory penalty notice specified that Zhang's registered address was precisely "Lucheng District, Wenzhou City, Zhejiang Province." This matches the jurisdiction of the Lucheng District Court handling the current lawsuit, potentially serving as a key clue to unraveling the case.

Compliance shortcomings. Following its change of ownership and rebranding, FIN STREET SEC has seen a recovery and consecutive growth in performance. However, compliance issues may still persist.

As recently as December 2025, FIN STREET SEC received seven regulatory penalties in a single day, involving violations related to private fund sales irregularities, employees engaging in unauthorized "flyer" sales, and providing improper benefits to clients, leading regulators to order increased internal compliance checks and rectification within a deadline. Furthermore, its wholly-owned investment banking subsidiary, Hengtai Changcai Securities, was issued a regulatory warning letter for failing to diligently perform its duties as a bond trustee, resulting in the misappropriation of raised funds.

From past violations and heavy regulatory penalties, to investor claims and now corporate recourse, coupled with frequent recent compliance issues, the series of events surrounding FIN STREET SEC is far from fully resolved.

For this brokerage, which is actively transforming and has seen a significant业绩 surge, the critical question remains: while performance soars, when will it successfully shore up its internal control weaknesses and break free from the cycle of "violation-penalty-dispute"?