In recent years, criminals have constantly renovated their criminal means, used the guise of Internet technology, pension and health care and other investment and financing, and illegally raised funds, which has led many investors to be deceived. Since 2018, the procuratorial organ of Xuancheng has prosecuted 63 people in 32 cases of illegal fund-raising, including 32 people in 23 cases of illegal absorption of public deposits and 31 people in 9 cases of fund-raising fraud.
In order to make more citizens understand the nature of financial fraud, Xuancheng People's Procuratorate selected two typical cases of illegal fund-raising and illegal absorption of public deposits handled in recent years to comprehensively analyze the characteristics and means of cases with case interpretation method, and remind citizens to identify and prevent financial traps woven by criminals using various investment methods and trading platforms.
Yu's fraud case of raising funds
In October 2017, the defendant, Mr. Yu, changed his Jixi County Hongda Agricultural Trade Co., Ltd. into Anhui Xihongtai Ecological Agricultural Science and Technology Development Co., Ltd. The legal person was registered as his sister, Mr. Zhang, and the actual manager was Mr. Yu. In order to absorb funds, Mr. Yu drew on the investment model of Guizhou Xihongtai and announced that the company operated tourism, hotels, pension and other projects, In fact, the company has no corporate account and no actual production and operation. In the form of developing members, Mr. Yu allowed members to get 100 yuan of investment rebate every working day for every 2600 yuan invested (changed to 3000 yuan in November), and the rebate will end at 6600 yuan for 66 working days. Mr. Yu has set up a company service center in various places, and the person in charge of the service center is responsible for managing local investment members, developing new members, collecting member investment funds, issuing member rebates and other matters. Mr. Yu will give the person in charge a reward of 200 yuan for a member investment. During the fundraising period, Mr. Yu set up a WeChat group of service center principals and investment members to manage the fundraising work, issue false publicity and entice others to invest. The person in charge of the service center will transfer the developed members and the investment funds absorbed to Mr. Yu every day, and Mr. Yu will calculate the rebate amount according to the reported data, and transfer it to the person in charge of the service center through the bank.
Through the above model, Yu has successively developed more than 30 service centers in Anhui, Sichuan, Chongqing and other places, with hundreds of people participating in the investment. On January 17, 2018, the defendant, Mr. Yu, stopped rebate, and the responsible persons and members from all over the country urged him through mobile phones, WeChat or Jixi. Mr. Yu lied about the company's system upgrade and other reasons to suspend rebate, and did not meet the victims who came to Jixi to collect money. Later, Mr. Yu deleted the WeChat group, turned off his mobile phones, and lost contact. In February 2018, the defendant, Mr. Yu, left Jixi, and during the period of hiding, withdrew and transferred 1.48 million yuan of member investment funds deposited in the name of his son and sister for personal consumption and investment.
After identification, the defendant Yu received a total of more than 20 million yuan of funds raised through local service centers, paid more than 10 million yuan of rebate, and the balance between income and expenditure was more than 7 million yuan.
The case was investigated and concluded by the Jixi County Public Security Bureau. The defendant Yu was suspected of fund-raising fraud and was transferred to the People's Procuratorate of Jixi County for examination and prosecution on December 10, 2018. After examination, the court found that the defendant, Mr. Yu, had committed the crime of fund-raising fraud by using fraud methods such as promising high rebate and false publicity to illegally raise funds for the purpose of illegal possession, and committed the crime of fund-raising fraud. On April 3, 2019, the court filed a public prosecution to the People's Court of Jixi County. The court adopted the opinion of the public prosecution organ and sentenced Mr. Yu to 11 years' imprisonment for fund-raising fraud, And a fine of 250000 yuan.
Illegal absorption of public deposits by Lu and Li
On December 19, 2012 and December 30, 2014, Jiao (handled separately) successively registered Anhui Dengding Commerce and Trade Co., Ltd. and Wuwei County Dengding Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Dengding Commerce and Trade Company" and "Wuwei Dengding Company" respectively), and served as the legal representative of the company. Later, on March 9, 2015 On December 23, 2015, Dengding Trading Company Xuancheng Branch and Wuwei Dengding Company Xuancheng Branch were respectively established in Room 902, Block B, Building 1, Guogou Plaza, Xuancheng City. The defendant Lu is the head of Xuancheng Branch, and the defendant Li has been the accountant of Xuancheng Branch since April 2015.
From November 2014 to December 2016, without the approval of the relevant financial authorities, Jiao publicized publicly in the name of Dengding Trading Company Xuancheng Branch and Wuwei Dengding Trading Company Xuancheng Branch, and on the ground that operating environmental protection products requires capital turnover, committed to paying monthly interest ranging from five to eight cents to absorb deposits from unspecified members of the public. In the implementation of criminal activities, the defendant Lu is specifically responsible for organizing and implementing the fund-raising activities of Xuancheng Branch, managing and assessing the staff of the branch, and drawing a certain percentage of the funds raised; Knowing that Xuancheng Branch is engaged in illegal absorption of public deposits, Li collected funds according to the requirements of Wuwei Dengding Company, provided personal bank accounts to help Xuancheng Branch transfer funds, and concluded loan contracts with victims. Up to the time of the crime, the illegal absorption of public deposits amounted to 10117828 yuan, resulting in a total loss of 8553253 yuan to the victims. Among them, the defendant Li Moumou was involved in a joint crime with the amount of RMB 10064922.
This case was investigated and concluded by Xuanzhou Branch of Xuancheng Public Security Bureau. The defendants Lu and Li were suspected of illegally absorbing public deposits and were transferred to Xuancheng People's Procuratorate for review and prosecution on December 26, 2018. On May 29, 2019, the court brought a public prosecution to Xuanzhou District People's Court of Xuancheng City for the crime of illegal absorption of public deposits committed by Lu and Li. The court sentenced the defendant Lu to one year and six months in prison for the crime of illegal absorption of public deposits, and imposed a fine of 40000 yuan. The defendant, Li, was sentenced to one year's imprisonment, suspended for two years and fined 30000 yuan. The defendant Lu Moumou appealed, and later the city intermediate people's court ruled to reject the appeal and uphold the original judgment.
