A Study Of Problems In Judicial Application Of Financial Fraud

The rapid development of society is bound to lead to relatively backward ofsocial system and norms. Undoubtedly, now China is in a specific historical periodwhen market economy still needs to be developed. The long-term coexistence ofprivate financing and formal financing is an indisputable fact. However, privatefinancing is a double-edged sword. It brings tremendous benefits, while alsobecoming extremely dangerous due to the lack of a clear specification. Therefore, itbecomes very important as how to define legitimate private financing and fund-raisingfraud, how to identify financial fraud and other illegal fund-raising crime andaccurately apply in the current context of the times.This paper takes Wu Ying fund raising fraud as an example, collecting materialsof similar cases, employing literature research method, trying to demonstrate part ofthe problems encountered in the financing fraud applies. First, a brief review of thecase is made, and both the prosecution and the defense’s views and reasons are brieflydiscussed. At the same time the three judgments of the Court are introduced, and thefocus of debate in the case is summarized on this basis. Second, through analyzing theprivate financing behind Wu Ying case, the connotation of private financing has beenclarified. A clear legal boundary between private financing and illegal fund-raisingborrowing has been made from four perspectives: the range of borrowers, thesubjective purpose of the two sides, the level of the rate of return, and theperformance capabilities of the perpetrator. Then it is concluded that the case of WuYing belongs to illegal fund-raising. Meanwhile, it is identified that Wu Ying’sbehavior constitutes financial fraud. Finally, starting from the facts of the case that WuYing was sentenced to death, through the elaboration of the legal basis, it is suggestedthat our penalty should tend to mitigation and adhere to "less kill, be careful to kill".Then from the fault of the victims of financial fraud, it is drawn that Wu Ying beingsentenced to the death penalty is unreasonable.“Fund is like water, guiding is better than blocking.” Problems to be solved in judicial practice, including how to guide the rational flow of private capital, perfectlegal regulation of financial fraud crime, make criminal law realize the purpose of theprevention of crime, and utilize the penalty function. Through analyzing Wu Yingfund raising fraud, this paper is intended to propose some suggestions for theproblems above.