Legal analysis
Whoever, in violation of state regulations, issues fund shares to raise funds without legal approval, if the circumstances are serious, shall be convicted and punished for the crime of illegal business operation in accordance with the relevant provisions of the Criminal Law. The charges of illegal fund-raising are all serious criminal offences, and the circumstances are often very serious, and they will be sentenced to 10 years imprisonment or even life imprisonment. Moreover, cases of illegal fund-raising generally have civil lawsuits, so the victims have to pay compensation after being sentenced. The administrative department for industry and commerce of the people's government shall investigate and deal with acts suspected of operating without a license, and may exercise the following functions and powers and order it to stop relevant business activities; Investigate the units and individuals suspected of operating without a license to understand the relevant situation; Entering a place suspected of operating without a license to carry out on-site inspection; Consult and copy contracts, documents, account books and other related materials related to suspected unlicensed operation. Places suspected of operating without a license may be sealed up; Tools, equipment, raw materials, products and other items suspected of being used for unlicensed operation may be sealed up and detained. Investigate and deal with acts suspected of operating without a license and take measures according to relevant laws and regulations.
legal ground
Article 225 of the Criminal Law of People's Republic of China (PRC), in violation of state regulations, commits one of the following illegal business operations, disrupting market order, and if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times his illegal income or his property shall be confiscated: (1) dealing in franchise, monopoly goods or other commodities whose business is restricted by laws and administrative regulations without permission; (2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations; (three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business; (four) other illegal business activities that seriously disrupt the market order.