Discussion On The Crime Of Fraudulent Fund-raising

Fraudulent fund-raising crime is a kind of crime which the criminals use fraud method to get certain amount of money with the purpose of illegal possession. This paper does research on fraudulent fund-raising crime mainly by following four aspects: regulating principles, criminal constitutions, judicial identifications and the improvement of current regulations.The first part of this paper focuses on fraudulent fund-raising’s definition, characteristics, principles of criminal regulation and the necessity of criminal regulation. Fraudulent fund-raising crime has three characteristics: being with purpose of illegal possession, using fraud methods and the criminals are often groups. Because of the demand of folk financing and speculation, the frequency of fraudulent fund-raising crime is increasing and the situation is severe. Fraudulent fund-raising is a kind of typical crime which named "stakeholder type", a crime with a chain of harmful consequences, reflectivity, permeable, and having extremely serious social harm. Whether fraud fund-raising is a crime or not, what’s the difference between it and other crimes and how to apply criminal penalties, all these problems need special provisions to solve. Besides these, when regulate fund-raising fraud, it should strictly obey the criminal rules and meet the demand of mitigation, principles of subjective and objective.The second part mainly discusses about the crime constitution of fraudulent fund-raising. The object is a complex object, the main object is the country’s financial management order, and the second object is the ownership of public or private property. The subject of crime concludes individuals and units. The subjective aspect of the crime is direct intention with the purpose of illegal possession.The third part focuses on current financial regulations and judicial determinations in the Supreme Court Interpretation about fraudulent fund-raising crime including three aspects: the rules and judicial identifications about the acts of fraudulent fund-raising; application of the rules; identifications about the purpose of illegal possession. Firstly we put forward the four characteristics of illegal fund-raising acts according to the Supreme Court Interpretation, it includes illegality, inducement, social provisions and openness. Then we study the boundaries between illegal fund-raising behaviors and the legitimate, private lending, and kinds of financial innovations. About the purpose of illegal possession, the paper focuses on the methods and principles about the definition of illegal purpose possession firstly, then to study how to understand and apply the Supreme Court provisions on the purpose of illegal possession.The fourth part researches on how to perfect the current regulations of fraudulent fund-raising. We propose that the private lending should be legalized, and it should set clearly distinguished lines between private lending and fraudulent fund-raising, by the time, it should set compulsory disclosure system of private lending information. Regarding the identification about the purpose of illegal possession, we think knowing have no ability to return the raised funds or invest them into high-risk industries leading to raised funds can not be returned should be identified as the purpose of illegal possession case. And we advise to abolish the provisions of "profligate raised funds leading to raised funds ".