The difference between non-smoking and fund-raising fraud and their prison terms

The difference between the two is mainly reflected in the different subjective intentions of the crime. The crime of fund-raising fraud is the perpetrator's method of fabricating facts and concealing the truth with the intention of permanently illegally possessing the funds of unspecified members of the society. It has the subjective intention of illegal possession. Intentional; while the perpetrator of the crime of illegally absorbing public deposits only temporarily occupies investors' funds, the perpetrator promises and intends to repay the principal and interest. There are two levels of sentencing for the crime of illegally absorbing public deposits, with the maximum penalty being ten years in prison. Individuals: disrupting financial order (criteria for filing a case) shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and may concurrently or solely be fined not less than RMB 20,000 but not more than RMB 200,000. If the amount is huge (1 million yuan/100 people/direct economic loss of more than 500,000 yuan) or there are other serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than 3 years but not more than 10 years, and a fine of not less than 50,000 yuan but not more than 500,000 yuan.

1. Four common methods of illegal fund-raising

1. Promise of high returns. Criminals fabricate myths about "pie in the sky" and "getting rich overnight", promising investors high returns. In order to defraud more people to participate in fund-raising, illegal fund-raisers often fulfill the promised principal and interest on time and in full in the early stage of fund-raising. After the fund-raising reaches a certain scale, they secretly transfer the funds or abscond with the money, causing financial losses to the fund-raising participants.

2. Make up false projects. Most criminals register legal companies or enterprises, and under the guise of responding to national industrial policies and launching entrepreneurship and innovation, they fabricate various false projects. Some even organize free travel, inspections, etc., to defraud the public's trust.

3. Use false propaganda to build momentum. Criminals often spend a lot of money on publicity, hiring celebrity endorsements and celebrity platforms, publishing advertisements in major radio and television, Internet and other media, publishing exclusive interviews in famous newspapers and periodicals, hiring people to widely distribute leaflets, making social donations, etc., to create False momentum.

4. Use family affection to deceive. Some participants in illegal fund-raising, in order to complete or increase their performance, sometimes adopt quasi-pyramid schemes. They do not hesitate to use family and geographical connections to fabricate lies about obtaining high returns, and recruit relatives, friends, classmates or neighbors to join, causing the participants to spread rapidly. , the scale of fund-raising continues to expand.

2. If the perpetrator has any of the following circumstances, his or her behavior shall be deemed to be illegal fundraising using fraudulent methods:

1. Absconding with the funds raised after raising funds;

2. Failure to use the raised funds for the agreed purposes, but squandering and abusing them without authorization, resulting in the non-return of the raised funds;

3. Using the raised funds to carry out illegal and criminal activities, resulting in the non-refundable of the raised funds ;

4. Promise to fund raisers a high rate of return at maturity that exceeds the bank’s highest floating interest rate of 50@0 for the same period.

Legal basis: "Criminal Law of the People's Republic of China" Article 176 The crime of illegally absorbing public deposits refers to illegally absorbing public deposits or absorbing public deposits in disguised form and disrupting financial order. The offender shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also or shall be fined not less than 20,000 yuan but not more than 200,000 yuan; if the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than 10 years, and shall also be fined not less than 50,000 yuan. A fine of up to 500,000 yuan.

If a unit commits the crime in the preceding paragraph, the unit shall be fined, and the person directly in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.