Why was the fund-raising fraud case transferred from Weidu District Procuratorate of Xuchang City to Xuchang City Procuratorate for public prosecution?

This situation shows that only cases with large value, heavy nature and a large number of people involved will be under the jurisdiction of the Municipal Procuratorate and need to be taken seriously.

The nature of illegal fund-raising can be determined by the procuratorial organ through the government website and the industrial and commercial department to inquire whether the relevant enterprises are legal persons or companies approved by the state, and whether the approved business scope includes absorbing deposits, issuing stocks, bonds, funds and other wealth management products. If you don't have the main qualification to sell financial products and carry out deposit and loan business, you are suspected of illegal fund-raising.

For example, various investment companies, investment consulting companies, guarantee companies, auction companies, pawn companies, small loan companies, etc. These enterprises are prohibited from absorbing public deposits by national laws and policies and do not have the main qualification to absorb deposits.