Illegal fund-raising is a crime, but careful identification of its characteristics can avoid being deceived. Illegal fund-raising has the following characteristics: First, it is not approved by the relevant departments or according to law. The second is to use high interest rate and high return as bait and promise to repay the principal and interest on schedule. Third, the fund-raising target is uncertain. Fourth, it will cover up its illegal fund-raising behavior by signing contracts and other means.

Relevant legal knowledge

Criminal law of the people's Republic of China

Article 192

Whoever illegally raises funds by fraudulent means for the purpose of illegal possession, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan;

If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan or confiscated property.

Extended data:

Illegal fund-raising (according to the provisions of the Notice on Banning Illegal Financial Institutions and Illegal Financial Business Activities) refers to the behavior that a unit or individual raises funds from the public by issuing stocks, bonds, lottery tickets, investment fund securities or other creditor's rights certificates without the approval of the relevant departments in accordance with legal procedures, and promises to repay the principal and interest to investors in cash, in kind or in other ways within a certain period of time.

Baidu Encyclopedia-People's Republic of China (PRC) Criminal Law