The act of absorbing funds from the public (including units and individuals) in violation of national financial management regulations, which meets the following four conditions at the same time, shall be deemed as "illegally absorbing public deposits or absorbing public deposits in disguised form" as stipulated in Article 176 of the Criminal Law, except as otherwise provided by the Criminal Law:
1, absorbing funds without the approval of relevant departments according to law or in the form of borrowing legal business;
2. Publicize to the public through media, promotion meetings, leaflets, mobile phone messages, etc.
3. Promise to repay the principal and interest or pay the return in the form of money, kind, equity, etc. In a certain period of time;
4. Absorb funds from the public, that is, social unspecified objects.
Extended data
Financing characteristics
1, without the approval of relevant departments according to law, including fund-raising without the approval of departments with approval 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.
3. Raise funds from unspecified social objects. The "unspecified object" here refers to the public, not a specific minority.
4. 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.
Baidu encyclopedia-illegal fund-raising