Legal analysis: Equity investment fraud can be judged by the following points: 1, and the investment subject is not specific. Private equity investment can only be targeted at specific targets and the number of people is limited. 2. Private investment can only be conducted by private investment. Usually, fund managers negotiate with investors privately, promising quick returns, promising high returns and fictional projects. Equity investment refers to the economic behavior of enterprises (or individuals) to obtain profits or dividends from other enterprises by purchasing shares of other enterprises (listed and unlisted companies) or directly investing in other enterprises with monetary funds, intangible assets or other physical assets.

Legal basis: Article 266 of the Criminal Law of People's Republic of China (PRC) defrauds public or private property, and if the amount is relatively large, it shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance; 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; 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.