Illegal behavior of private placement products: 1, illegal fund-raising behavior. Raising funds from unqualified investors, lowering the threshold of investors in disguise, publicly raising funds from unspecified objects, exaggerating or falsely propagating, illegally protecting capital and income, and the number of investors exceeds the quorum limit. 2. The investment operation is illegal. Misappropriation, embezzlement of the fund property, misappropriation of the inherent property of the fund, collection of fees in violation of the contract, transfer of benefits, etc.

Legal objectivity:

Article 9 of the Securities Law of People's Republic of China (PRC) * * * The public offering of securities must meet the conditions stipulated by laws and administrative regulations, and shall be reported to the securities regulatory agency of the State Council or the department authorized by the State Council for registration according to law. Without legal registration, no unit or individual may publicly issue securities. The specific scope and implementation steps of the securities issuance registration system shall be stipulated by the State Council. In any of the following circumstances, it is a public offering: (1) issuing securities to unspecified objects; (2) More than 200 people have issued securities to specific objects, but the number of employees who have implemented the employee stock ownership plan according to law is not included; (3) Other issuance acts as stipulated by laws and administrative regulations. Non-public issuance of securities shall not be carried out by advertising, public persuasion or disguised publicity.