The Alienation And Assimilation Analysis Between Illegal Pooling Of Public Saving Deposits And Pyramid Schemes

In between2003and2008, the suspect Feng Yang together with Miao Gengyuan and Liu Hao had been manipulating Beijing Oriental Senmao Technology Development Limited (hereinafter referred to as the Oriental SenMao company) to collect fund from the society by transferring forest right while managing on behalf and promising a minimum income protection and other means, with illicit enrichment totaling160million yuan. The case came out shaking the capital.This case was a representative of constantly evolving complex financial crimes emerging in recent years. Its appearance indicated that, on the one hand our existing financial management system cannot meet the needs of social development and economic activities; on the other hand also the legal system of China’s financial management was relatively backward, needing to be improved.The "Oriental SenMao case" raised all kinds of controversy and one important argue point was how to distinguish and identify the crime of illegal pooling of public saving deposits with organizing and leading pyramid schemes while sorting out their relationship. Due to the new crime form, special means and lack of attention, this case was left with unsolved issues. However, with the deepening of China’s reform and opening up, the new complex financial crimes such as this will be more frequently seen. Hence strengthening related research and promoting sound financial criminal legislation is particularly important.