What is the difference between borrowing money and illegally raising funds?

We all know that when funds are short, we will find ways to raise funds, such as borrowing money and loans. So, what is the difference between borrowing money and illegal fund-raising? Borrowing money means temporarily obtaining part of the funds from others, and Promise to return money when due, and illegal fund-raising is to raise large amounts of funds from the public with the promise of high rates of return, which is illegal. The characteristic of illegal fund-raising is that it allows high interest rates and is returned in installments! It is qualitatively different from borrowing money. Borrowing money is generally protected by law. If the monthly interest is more than 8 times higher than the bank's monthly interest rate in the same period, it is usury and is not subject to the law. Protection 1. Characteristics of illegal fund-raising (1) Absorbing funds without legal approval from relevant departments or borrowing legal business forms; (2) Publicly publicizing to the society through media, promotion meetings, flyers, mobile phone text messages, etc.; (3) Commitment to Repay principal and interest or provide returns within a certain period of time in the form of currency, physical objects, equity, etc.; (4) Absorb funds from the public, that is, unspecified objects in society. 2. Main forms of illegal fund-raising Illegal fund-raising activities involve a wide range of contents and take various forms. Judging from the current case situation, they mainly include four major categories: debt, equity, commodity marketing, and production and operation. The main manifestations are as follows: (1) Illegally raising funds in the name of planting, breeding, project development, manor development, ecological and environmental protection investment, etc. (2) Illegal fund-raising in the name of issuing or disguised issuance of rights certificates such as stocks, bonds, lottery tickets, investment funds, or futures trading or pawning. (3) Illegal fund-raising by claiming shares and paying dividends. (4) Illegal fund-raising through membership cards, membership certificates, seat certificates, discount cards, consumption cards, etc. (5) Illegal fund-raising through product sales and leaseback, repurchase and transfer, membership development, merchant alliances and the "quick points method". (6) Using private "associations", "communities" and other organizations or underground banks to illegally raise funds. (7) Use "virtual" products constructed with modern electronic network technology, such as "electronic shops" and "electronic department stores" to invest in entrusted operations, repurchase at maturity, etc. to illegally raise funds. (8) Divide properties, real estate and other assets into equal parts and illegally raise funds by selling the disposal rights of their shares. (9) Illegal fund-raising by signing commodity distribution contracts and other forms. (10) Illegal fundraising in the form of pyramid schemes or secret connections. (11) Use the Internet to set up investment funds to illegally raise funds. (12) Use the form of "electronic gold investment" to illegally raise funds. 3. Common means of illegal fund-raising (1) Promise of high returns In order to attract the masses to be deceived, criminals often fabricate the myth of "pie in the sky" and "become rich overnight", and lure investors with the promise of high returns through huge profits. In order to defraud more people to participate in fund-raising, illegal fund-raisers often fulfill the promised principal and interest in full and on time in the early stage of fund-raising. After the fund-raising reaches a certain scale, they secretly transfer the funds or abscond with the money, causing financial losses to the fund-raising participants. (2) Criminals who fabricate false projects mostly register legal companies or enterprises, and under the guise of responding to national industrial policies, supporting new rural construction, and practicing "economic theory", their business projects have developed from traditional planting and breeding industries to high-tech Technology development, raising funds to build houses, investing in shares, after-sales and leasebacks, etc., use the conclusion of contracts as a guise to fabricate false projects and promise high fixed incomes to defraud public investment. Some criminals use the name of entrusted financial management to deliberately confuse the concept of investment and financial management. They use new terms such as electronic gold, investment funds, online foreign exchange speculation, and e-commerce to confuse the public, promising stable and high returns, and deceiving the public to invest. (3) In order to deceive the public's trust by using false propaganda, criminals often spend a lot of money on publicity, such as hiring celebrities to speak for themselves, publishing exclusive interviews in famous newspapers and periodicals, hiring people to widely distribute leaflets, and making social donations to increase publicity. Propaganda intensity, creating false momentum, defrauding public investment. Some criminals use network virtual space to set up websites in other places or rent overseas servers to set up websites. Some also use online platforms such as websites, blogs, forums, and instant messaging tools such as QQ and MSN to spread false information and defraud public investment. Once they are investigated, they will quickly close the website and abscond with the money in the name of offline operations not following the rules.

(4) Using family ties to deceive criminals often use relationships with relatives, friends, fellow villagers, etc. to lure the public into investing with high returns. Some people who participate in MLM, under the mental brainwashing or physical coercion of the MLM organization, in order to complete or increase their performance, do not hesitate to use family and geographical relationships to attract relatives, friends, classmates or neighbors to join, so that the number of participants spreads rapidly and the scale of fund-raising continues to expand. 4. Prevent and combat illegal fund-raising publicity and education slogans (1) Stay away from illegal fund-raising and reject the temptation of high profits (2) Cherish your life’s hard work and stay away from illegal fund-raising (3) Pie in the sky will not fall, getting rich overnight is a trap (4) Improve Ability to prevent risks and consciously resist illegal fund-raising (5) Resist the temptation of high-interest fund-raising and choose investment channels rationally (6) Establish correct financial management concepts and be wary of illegal fund-raising traps (7) Stay away from illegal fund-raising and build a better life (8) Prevent illegal fund-raising, Everyone has a responsibility (9) Raise awareness of risk prevention, be wary of loan, illegal financing and illegal fund-raising advertising traps, and beware of being deceived (10) Crack down on illegal fund-raising and create social harmony (11) Crack down on illegal fund-raising and safeguard the interests of the masses (12) Crack down on illegal fund-raising, maintain financial stability, and create a harmonious society. (13) Participate in illegal fund-raising and bear the losses yourself (14) Illegal fund-raising is not protected by law, and you must bear the risks of participating in illegal fund-raising activities (15) ) Be wary of illegal fund-raising traps that provide so-called high returns in the name of private equity investment. (16) Be wary of illegal fund-raising activities in the name of planting, breeding, project development, manor development, ecological and environmental protection investment, etc. To punish illegal recruitment of the public in accordance with the law Regarding illegal fund-raising criminal activities such as deposits and fund-raising fraud, the Supreme People's Court, together with the China Banking Regulatory Commission and other relevant units, studied and formulated the "Interpretation on Several Issues Concerning the Specific Application of Laws in the Trial of Illegal Fund-raising Criminal Cases". This judicial interpretation has been in effect since January 2011. It will come into effect on March 4th. On January 4, the Supreme People's Court held a press conference to introduce the relevant circumstances of the issuance of this judicial interpretation. In recent years, illegal fund-raising activities have been rampant, the number of cases remains high, major and important cases occur frequently, the cases involve a wide area, involve many industries, and a large number of people participate in fund-raising, which not only seriously damages the interests of the people, but also seriously affects social stability and National economic security, illegal fund-raising has evolved into a typical stakeholder-type economic crime. The "Interpretation" announced this time is divided into nine articles. Among them, Article 1 clarifies the definition standards and characteristic requirements of illegal fund-raising; Article 2 clarifies the specific behavior of illegally absorbing public deposits; Article 3 clarifies the conviction and sentencing standards for the crime of illegally absorbing public deposits; Article 4 clarifies The specific identification standards for the "illegal possession purpose" element in the crime of fund-raising fraud; Article 5 clarifies the conviction and sentencing standards for the crime of fund-raising fraud; Article 6 clarifies the specific behavior of issuing stocks, companies, and enterprise bonds without authorization; Article 7 clarifies Article 8 clarifies the nature of false advertising and punishment standards in illegal fund-raising activities. According to reports, the promulgation of the "Interpretation" is of great significance for cracking down on serious illegal fund-raising criminal activities in accordance with the law and raising the public's awareness of prevention: First, the "Interpretation" clarifies the concept and characteristics of illegal fund-raising, and clarifies the definition of illegal fund-raising. The policy and legal boundaries with legal financing are conducive to dispelling criminals' luck mentality, helping regulatory authorities and case-handling agencies to promptly detect and investigate illegal fund-raising activities, and preventing illegal changes in legal financing and the malignant development of illegal fund-raising. Second, the Interpretation makes specific provisions on the application of laws to various crimes related to illegal fund-raising, which is conducive to correctly distinguishing between crimes and non-crimes, and between crimes and crimes, and severely punishing serious illegal fund-raising criminal activities in accordance with the law. Third, the "Interpretation" identifies various illegal fund-raising activities in practice, and specifically stipulates opinions and punishment standards for the criminal conduct of false advertising in illegal fund-raising activities, which is conducive to improving the prevention awareness and identification ability of the general public. Eliminate social incentives for illegal fund-raising and criminal activities, and effectively safeguard the legitimate rights and interests of the masses and social stability.

What is the difference between borrowing money and illegal fund-raising? If the interest on borrowing money is similar to bank interest, it is normal borrowing. If there is a high interest rate, be careful whether it is a loan shark. Both loan sharking and illegal fund-raising are illegal. However, Illegal fund-raising is more inclined to disrupt public order and defraud others of money. It usually fails because it cannot afford huge sums of money.