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What is private placement? What is the difference between it and illegal fund-raising?

Illegal financing and illegal fund-raising are different types of crimes stipulated in the criminal law. The two main crimes involved in illegal fund-raising are according to the provisions of the criminal law. Engaging in illegal fund-raising may constitute the crime of illegally absorbing public deposits or the crime of fund-raising fraud. Illegal financing refers to activities that absorb funds from unspecified objects in society without the approval of relevant departments and in the name of absorbing public deposits, but promise to perform obligations that are of the same nature as absorbing public deposits. There are still big differences between the two. First of all, there are differences in the number of people between the two: 1. Fund-raising is to obtain funds through "collection", which means obtaining financing from at least two or more people. 2. Financing refers to obtaining financing through more than one entity (including one entity). Secondly, there are behavioral differences between the two: 1. Illegal fund-raising generally refers to the behavior of obtaining social funds beyond the legal upper limit of the number of financing objects. For example, the maximum number of shareholders of a limited liability company is 80, but if the company accepts investment from more than 80 people through equity financing, it can be classified as illegal fund-raising. 2. Illegal financing is mainly reflected in "illegal", which refers to financing obtained through illegal means, such as obtaining bank loans by forging documents and related certificates. Legal basis: Article 176 of the "Criminal Law of the People's Republic of China" Whoever illegally absorbs public deposits or absorbs public deposits in disguised form and disrupts financial order shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall be sentenced to 2 years concurrently or separately. A fine of not less than 10,000 yuan but not more than 200,000 yuan; if the amount is huge or there are other serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than three years but not more than 10 years, and a fine of not less than 50,000 yuan but not more than 500,000 yuan. If a unit commits the crime in the preceding paragraph, the unit shall be fined, and the person directly in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.