An Exploration Into The Constituent Elements Of Fund Raising Defraud

With the rapid development of market economy,the financing needs of the small and medium-size enterprises(SMEs)keep increasing,making the private lending in the ascendant.In order to maintain financial interests of creditors and social stability,a series of strict laws and regulations are made for cracking down on illegal fund-raising.However,the laws and regulations are primitive and not systematic,which results in many ambiguities to judge whether a specific case of the private lending is legal or not,due to the complexity of the private lending.In this study,five chapters were included to illustrate the complexity of the private lending and the determining conditions for financial fraud.First,the review of financial fraud was given in the Chapter 1.Then in Chapter 2,the “Wuying” private lending case was introduced as a representative financial fraud and the controversy was collected about whether the “Wuying” private lending case belongs to the financial fraud.Based on the controversy,the confusedness in the private lending and the constitutive elements of the financial fraud were analyzed.After that,the “illegal possession” as one of the key determining conditions of the financial fraud was considered in Chapter 3 and the evidence of the “illegal possession” was focused on.Through judging whether the evidence of “illegal possession” could establish or not,we suggested that the justice understand should be applied in the justice practice.In Chapter 4,the target of the financial fraud was distinguished and proposed the unreasonable concepts when the public was considered as the target of the financial fraud.Then we proposed the flaws in the definition of “defrauding method” in Chapter 5 and gave some methods to prevent the defrauding in the financial market.From the analysis above,we gave some suggestions to improve the constitutive elements of the financial fraud,such as the principle of correspondence between subjectivity and objectivity.Meanwhile,some useful methods to prevent the financial fraud were also proposed.