Illegal fund-raising is an act of promising investors to repay the principal and interest within a certain period of time without the approval of the relevant departments according to law. The form of debt service is mainly currency, but there are also physical and other forms; Raise funds from unspecified objects in society. The "unspecified object" here refers to the public, not a specific minority; Cover up the essence of illegal fund-raising in a legal form. In the face of the chorus of some officials and illegal fund-raising enterprises, it is really hard to say that the latter must have dragged the former into the water, and it is hard to say that the former just "inadvertently" turned into a "living prop" and an "accessory". The public security and judicial organs severely crack down on illegal fund-raising activities according to law, and must not let these ambiguous "live props officials" go. As long as you participate in the "performance" of illegal fund-raising, you must bear the responsibility of party discipline and political discipline and legal responsibility, whether it is only the appearance fee or further operation.
Related classification:
According to the relevant provisions of the Notice on Further Combating Illegal Fund Raising (Yinfa [1999] No.289), "illegal fund raising" can be summarized as follows:
(1) Absorb funds by issuing securities, membership cards or debt certificates.
It is common to issue shares, bonds, lottery tickets, investment funds and other rights certificates in the name of futures trading, pawn, etc. or illegally raise funds. Illegal fund-raising by claiming shares, participating in dividends, entrusting investment, entrusting financial management, etc. Illegal fund-raising through membership cards, membership cards, seat cards, discount cards, consumption cards, etc.
(2) Divide real estate, real estate and other assets into equal parts, and raise funds at high interest rate by selling their shares.
The latest change is: illegal fund-raising by selling its share and promising to sell it for leaseback, after-sale repurchase and regular rebate.
(3) Illegal fund-raising in the form of folk clubs.
Recent changes: using underground banks to raise funds.
legal ground
Criminal Law of People's Republic of China (PRC) (revised in 2020)
Article 176 Whoever illegally absorbs public deposits or absorbs public deposits in disguised form, thus disrupting the financial order, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also, or shall only, be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; 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 and fined.
If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.
Whoever commits the acts mentioned in the preceding two paragraphs and actively returns the stolen goods before bringing a public prosecution to reduce the occurrence of damage results may be given a lighter or mitigated punishment.
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 less than three years but not more than seven years and shall also be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than seven years or life imprisonment, and shall also be fined or confiscated.
If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.
Article 266 Whoever defrauds public or private property in a relatively large amount shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance, and shall also, or shall only, be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; 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 or confiscated. Where there are other provisions in this Law, such provisions shall prevail.