1. promises high returns. In order to attract people to be deceived, criminals often fabricate myths and promise investors high returns by profiteering. In order to defraud more people to participate in fund-raising, illegal fund-raisers often promise to pay the principal and interest in full and on time at the initial stage of fund-raising, and then secretly transfer funds or abscond with money after the fund-raising reaches a certain scale, causing economic losses to fund-raising participants. If the annual rate of return exceeds 6%, the general public must be highly vigilant.
2. Fabricate false items. Most criminals fabricate false projects by registering legitimate companies or enterprises, under the banner of responding to national industrial policies, supporting the construction of agriculture, countryside and farmers, and foreign high-tech research results. The business projects range from traditional planting and aquaculture to high-tech development, raising funds to build houses, investing in shares, selling and leaseback, etc., promising high fixed income or defrauding public investment under the guise of concluding contracts. Some lawless elements deliberately confuse the concept of investment and financial management under the guise of entrusted financial management, and confuse the public with new terms such as electronic gold and investment fund.
3. False propaganda is the third largest means of illegal fund-raising. In order to cheat the public's trust, criminals often hire economists and social celebrities to speak for them, hire people to distribute leaflets widely, make social donations, create false momentum and cheat the public's investment.
4. Using kinship to lure, that is, using the network of relatives and friends of the participants to lure the public to participate in investment with high returns, and some fund-raising participants use kinship and geographical relations to intentionally or unintentionally indirectly attract relatives, classmates or fellow villagers to participate in illegal fund-raising.
Legal basis:
Article 192 of the Criminal Law of People's Republic of China (PRC) stipulates that anyone who illegally raises funds by fraud for the purpose of illegal possession 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.
Article 176 Whoever illegally absorbs public deposits or absorbs public deposits in disguised form, thus disrupting 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 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 three 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.