1, illegal fund-raising has four characteristics, namely:
(1) Fund-raising without legal approval of relevant departments, including fund-raising without approval authority;
(2) Undertaking to repay the principal and interest to investors within a certain period;
(3) Raising funds from unspecified social objects;
(4) Cover up the essence of illegal fund-raising in a legal form.
2. Legal basis: Article 192 of the Criminal Law of People's Republic of China (PRC).
The crime of fund-raising fraud aims at illegal possession and uses fraud to illegally raise funds. If the amount is relatively large, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than seven years or life imprisonment, and shall also be fined or confiscated.
If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.
What is the difference between proper financial management and illegal fund-raising?
1, enterprise qualifications are different. Common entrusted financial management includes financial products, stocks and funds issued by banks, insurance companies and securities companies. Must have the franchise qualification to engage in entrusted investment management business, be approved and registered by the financial supervision department, and have strict examination and approval procedures; Financial institutions that invest, consult and have not been approved by the financial supervision department usually have their own funds for foreign investment, investment information consultation and debt guarantee. , simply do not have the business qualification to absorb public deposits; As for non-financial business entities such as ordinary businesses, beauty and fitness, and productive enterprises, they are even less qualified to absorb deposits.
2. The legal relationship between the parties to the contract is different. In the entrusted financing contract, the main body of the contract is usually consumers and banks and other financial institutions. The relationship between the two parties is a kind of entrustment. The trustee engages in financial activities in the name of the trustee, and the risks and benefits of financial management are borne and enjoyed by the trustee himself. In some illegal fund-raising activities, operators are often called financial management, but in fact they are borrowing. Most of them sign loan contracts with investors, and both parties belong to the loan relationship. Operators usually do not engage in special financial activities in the name of investors, but use illegally absorbed funds for other purposes and hold some high-risk investment projects such as futures and usury. Once their capital chain breaks, they may close down and people will go to the building.
3. The financial returns are different. The interest rate for financial advisers to find private loans from customers shall not exceed four times the interest rate for similar loans from banks. It is also known that among all kinds of wealth management products issued by banks, the yield is usually around 5%, and there are few products with the yield exceeding 10%, and not all products guarantee the yield.