What is illegal fund raising? What are the basic characteristics?

Illegal fund-raising is a criminal activity, which refers to the behavior that a unit or individual raises funds from the public by issuing stocks, bonds, lottery tickets, investment fund securities or other creditor's rights certificates without the approval of the relevant departments in accordance with legal procedures, and promises to repay the principal and interest to investors in cash, in kind or in other ways within a certain period of time.

The financing features are as follows:

First, without the approval of the relevant departments according to law, including fund-raising without the approval of the approving authority; The department with the power of examination and approval ultra vires to approve fund-raising, that is, the fund-raiser does not have the qualification of fund-raising subject.

2. Promise to repay the principal and interest to investors within a certain period of time. Debt service is mainly in the form of money, but there are also physical and other forms.

Third, raise funds from unspecified objects in society. The "unspecified object" here refers to the public, not a specific minority.

Fourth, cover up the essence of illegal fund-raising in a legal form. In order to cover up their illegal purposes, criminals often sign contracts with investors (victims) and pretend to be normal production and business activities in order to maximize their ultimate goal of defrauding funds.

Tips: The above contents are for reference only.

Reply time: 202 1-08-05. Please refer to the latest business changes announced by Ping An Bank in official website.

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