From Zeng Chengjie’s Fraudulent Fund-raising Case To See Legal Regulation Of Non-governmental Financing

On June14,2013Zeng Chengjie’s death verdict was upheld, sealing his fate once andfor all. The execution was carried out by the Changsha Municipal Intermediate People’s Courton July12. The execution of Zeng Chengjie, who was sentenced to death for fraud, grabbedthe headlines recently.While blaming the court for not sending the family a notice beforeZeng’s execution, the public also expressed doubts about the charge against him, namely"fraud in raising funds". From beginning to end,this case is controversial surrounding crimeor noncrime, the lack of the process of asset evaluation.The practitioners and theorists haveheated debate on it.Based on the details of this case,the paper has an analysis of this event from theperspective of law and proposes some corresponding countermeasures and suggestions toavoid such disputes in the future. This paper is divided into four parts:The first part has a detailed review of Zeng Chengjie’s case,and expounds the basis ofthe conviction of the Court, emphasis on the legislative authority of how Zeng constitutescrime of fraudulent fund raising. This part describes in detail since Zeng established hiscompany in2003, how the company had been growing rapidly relying on non-governmentalfinancing.The second part analysis Zeng Chengjie’s case from the perspective of legal regulations.Firstly, we should discriminate non-governmental financing from illegal fund-raising fromarticles of law, this helps us to determine wether Zeng’s behavior guity or not.Then, this partcombines the facts and the law to analysis the existing disputes in this case.The third part expouds institutional defects existing in non-governmental financing andrelated law and regulations.Firstly, this part clarifies the concept and characteristics ofnon-govermental financing within the scope of our law. Then, expouds why non-govermentalfinancing rises in many places and it exists huge hidden danger, this lays the foundation forthe following analysis. Finally, this part analysis the defects existing in thg legal regulation ofnon-governmental financing.The last part puts forward corresponding proposals from several parts, hope to makesome efforts to avoid similar disputed cases. Firstly, explains the choice from the aspects ofnongovernmental financial supervision mode of our country, expects that we can establish an institution or specifies one of the current three regulotary institution, and makes unified normsand commands to the coordinated development of the whole financial market and its varioussub-market from a macro point. Secondly, we should make clear the content and scope of thenongovernmental financial supervision in China, and we should avoid it being too strict orblank. Finally, the part give some suggestions to improve the related legal system ofnongovernmental financial supervision.