What are the criteria for determining illegal fund-raising?

First, without the approval of the relevant departments in accordance with the law, including fund-raising approved by departments without the authority to approve; departments with the authority to approve fund-raising beyond the authority to approve fund-raising, that is, fund-raisers do not have the subject of fund-raising

Two, the commitment to a certain period of time to the contributors of capital repayment and interest payments. In addition to the form of repayment of interest in the form of money, but also in kind and other forms.

Third, to the community of unspecified objects to raise funds. Here, "unspecified object" refers to the public, rather than a specific minority.

Four, the legal form to conceal the essence of its illegal fund-raising. In order to conceal their illegal purpose, criminals often sign contracts with investors (victims), disguised as normal production and business activities, to maximize their ultimate goal of fraudulent funds.

Three new features

Three new features of the 13 suspected cases of illegal fund-raising that occurred in Hebei, all of which were in the form of direct absorption of public deposits or fund-raising fraud, can be broadly divided into four major categories of debt, equity, commodities marketing, production and operation:

One is the change in the way of illegal fund-raising is varied. Criminals mostly through the registration of legitimate companies or enterprises, under the banner of responding to national industrial policy, support for the construction of new rural areas, etc., by the traditional planting, breeding to engineering projects, scientific and technological development, investment in shares, consumer rebates and other ways to transform.　

The second is the intertwining of various crimes. Criminals will be illegal fund-raising and pyramid schemes, contract fraud and other economic crimes intertwined together, using pyramid schemes to first brainwash the fund-raising personnel, promising a variety of preferential conditions and profit model, and then lure the fund-raising, layer by layer under the set. Generally in the early stage of fund-raising, criminals tend to actively "honor" the promise of return, to win the trust, to attract more people to join, the scale of fund-raising rapidly geometrically enlarged.

Third, the illegal fund-raising publicity at all costs, the use of media momentum. Such as hiring celebrity endorsement, published in some media interviews, the use of reports to promote the illegal enterprise "performance"; part of the illegal fund-raising money into the public welfare or donations; employing salesmen scurrying into the community to disseminate flyers, dissemination of information on fund-raising; organizing a variety of activities, and in the field to cash dividends, so that the participants first taste the sweetness for the Illegal fund-raising activities to publicize the "present".

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See the Baidu encyclopedia entry on "illegal fund-raising"