What is illegal fund-raising?

Illegal fund-raising is a criminal activity that refers to units or individuals raising funds from the public by issuing stocks, bonds, lottery tickets, investment fund securities or other debt certificates without approval from relevant departments in accordance with legal procedures. Funds, and the act of promising to repay principal and interest or provide returns to investors in currency, kind, or other ways within a certain period of time. The characteristics of illegal fund-raising are: first, fund-raising without legal approval from relevant departments, including fund-raising approved by departments without approval authority; second, 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; third, raising funds from unspecified objects in society. The "unspecific objects" here refer to the public, not to a specific minority; fourth, the essence of illegal fund-raising is concealed in legal form. In order to conceal their illegal purposes, criminals often sign contracts with investors and disguise them as normal production and business activities to maximize their ultimate goal of defrauding funds.

Legal Articles

"Measures for the Suppression of Illegal Financial Institutions and Illegal Financial Business Activities" Article 4 The term "illegal financial business activities" as mentioned in these Measures refers to unauthorized activities without the approval of the People's Bank of China. Engaged in the following activities:

(1) Illegally absorbing deposits from the public or absorbing deposits from the public in disguised form;

(2) Without approval in accordance with the law, in any name to unspecified objects in society Illegal fund-raising;

(3) Illegal granting of loans, settlement, bill discounting, fund lending, trust investment, financial leasing, financing guarantees, and foreign exchange trading;

(4) Chinese People Other illegal financial business activities determined by the bank.

The illegal absorption of deposits from the public as mentioned in the preceding paragraph refers to the activities of absorbing funds from unspecified objects in society without the approval of the People's Bank of China, issuing vouchers and promising to repay principal and interest within a certain period of time; the so-called Absorbing public deposits in disguised form refers to activities that, without the approval of the People's Bank of China, do not absorb funds from unspecified objects in society in the name of absorbing public deposits, but promise to perform obligations that are of the same nature as absorbing public deposits.

Article 192 of the Criminal Law of the People's Republic of China and the People's Republic of China. Whoever uses fraudulent methods to illegally raise funds for the purpose of illegal possession, and the amount is relatively large, 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 10 years, and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan; if the amount is particularly huge or there are other serious circumstances For other particularly serious circumstances, the offender 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 have property confiscated.

Warm reminder

The above answers are only based on the current information and my understanding of the law. Please refer to it with caution!

If you still have questions about this issue, it is recommended that you sort out the relevant information and communicate with professionals in detail.