For illegal fund-raising, the actor needs to repay the debt after being sentenced to punishment.
Legal basis: Civil Code (202 1. 1 came into force)
Article 187 If a civil subject should bear civil liability, administrative liability and criminal liability for the same act, it shall bear administrative liability or criminal liability, which shall not affect the civil liability; If the property of the civil subject is insufficient to pay, it shall give priority to civil liability.
Second, illegal fund-raising will be sentenced to fixed-term imprisonment, and participation in illegal fund-raising activities is not protected by law. The losses suffered by participating in the illegal absorption of public deposits and illegal fund-raising activities shall be borne by the participants themselves, and the debts and risks formed shall not be passed on to state-owned banks, other financial institutions and any other units that have not participated in the illegal absorption of public deposits and illegal fund-raising activities. After clearing up the creditor's rights and debts, if there is any illegal property left, it shall be confiscated and turned over to the central treasury on the spot. In the process of banning illegal absorption of public deposits and illegal fund-raising activities, local governments are only responsible for organizing and coordinating work, and cannot take financial allocations to make up for the losses caused by illegal fund-raising.
If the case of illegal fund-raising reaches the court, the court will organize expulsion, and all the remaining money will be returned to the fundraiser during the expulsion stage. Organizations with insufficient money will not be compensated and will be borne by the fundraiser.
How to deal with the money illegally raised?
The Supreme People's Court, the Supreme People's Procuratorate and the Ministry of Public Security jointly issued Opinions on Several Issues Concerning the Application of Laws in Handling Criminal Cases of Illegal Fund-raising (hereinafter referred to as Opinions). Item 5 of the Opinions stipulates the recovery and disposal of the property involved: illegally absorbing public funds is illegal income. In accordance with the law, recover the interest and dividends paid to fund-raising participants by absorbing funds, as well as the agency fees, benefits fees, rebate fees, commissions, commissions and other fees paid to those who help absorb funds. If the principal of the fund-raising participant has not been returned, the paid repayment can offset the principal.
Illegally absorbed funds and their transformed properties are used to pay off debts or transfer them to others, and they shall be recovered according to law in any of the following circumstances:
(a) others know that it is the above-mentioned funds and property;
(two) others get the above funds and property free of charge;
(3) Others obtain the above-mentioned funds and property at a price obviously lower than the market price;
(four) others obtained the above funds and property from illegal debts or illegal and criminal activities;
(five) other circumstances that should be recovered according to law.
If the property involved in the case that has been sealed up, detained or frozen is easy to depreciate and the cost of storage and maintenance is high, it can be sold or auctioned in accordance with relevant regulations before the end of the lawsuit.
The proceeds shall be kept by the seizure, seizure and freezing organ and shall be treated together after the litigation is concluded.
The property involved in the seizure, seizure and freezing shall generally be returned to the fund-raising participants after the end of the lawsuit. If the property involved is not returned in full, it shall be returned in proportion to the amount raised by the fund-raising participants.