What are the characteristics of illegal fund-raising?

1. The characteristics of illegal fund-raising mainly include the following four aspects:

1. Fund-raising without the legal approval of relevant departments, including fund-raising approved by departments without approval authority; the departments with approval authority exceed Authorization to approve fund-raising means that the fund-raiser does not have the subject qualifications for fund-raising.

2. Commitment to repay principal and interest to investors within a certain period of time. In addition to the main form of principal and interest repayment, there are also physical forms and other forms.

3. Raise funds from unspecified social objects. The "unspecific objects" here refer to the general public, rather than to a specific few people.

4. Use legal forms to conceal the essence of illegal fund-raising. In order to conceal their illegal purposes, criminals often sign contracts with investors (victims) and disguise them as normal production and business activities to maximize their ultimate goal of defrauding funds.

Extended information:

Main means of illegal fund-raising

1. Illegal issuance of securities. The People's Bank of China's "Implementation Plan for Rectifying the Arbitrary Fund Raising, the Establishment of Financial Institutions and the Arrogant Conduct of Financial Business" (July 29, 1998) stipulates: "Enterprises that raise funds for a fee through the public issuance of stocks, corporate bonds, etc. must comply with relevant laws and regulations. The provisions of administrative regulations shall be subject to the approval of the competent department of the State Council.”

It also stipulates: “No unauthorized breakthroughs in the issuance plan shall be made without approval, and no unauthorized issuance of securities shall be established or approved. Any violation of the regulations shall be punished. In accordance with the provisions of the "Enterprise Bond Management Regulations", legal liability will be pursued. "If the above-mentioned "Implementation Plan" is strictly interpreted.

At the current stage, the operation of housing mortgage securities in my country is likely to be considered suspected of illegal fund-raising by relevant departments before clear and specific regulations are promulgated.

2. Illegal issuance of debt certificates to unspecified objects in society. This is a relatively common type of illegal fund-raising cases. Illegal fund-raisers mainly raise funds by issuing debt certificates to unspecified objects in society and promising to pay high returns when due.

Baidu Encyclopedia-Illegal Fund Raising