VIII

1.Fraudulently raising funds in the name of film or television investment, when in fact the funds are meant for permanent illegal possession,constitutes the crime of fraud in financing if the amount is quite big.

2.Taking deposits from people illegally or in disguised form and disrupting financial order in the name of film and television investment, when in fact the deposits are meant for temporary absorption,constitutes the crime of fraudulently absorbing deposits from people.

3.Any natural person who carries out the above-mentioned illegal fund-raising activities in the name of a company whose main business after establishment is to carry out illegal activities, shall be held criminally liable according to the law.(https://www.daowen.com)

Case: J set up Company R for the purpose of raising public deposits without an actual investment project.Without approval, Company R hired people to fictionally publicize a certain film and television investment and wealth management project to the public through advertising,installing electronic billboards outside the store and giving out flyers.The project raised funds in the form of signing a fund entrustment contract or lending agreement illegally.It defrauded a total of more than RMB 23,990,000 yuan.J used most of the funds for personal prof ligacy,so that the funds could not be returned to the public, and he destroyed the account after that.

Employees C and Z of Company R jointly promoted this project to the public and signed contracts with clients, received and transferred investment funds, and paid interest to clients, etc.They obtained commissions from J separately.C and Z totally took the public deposits of over RMB 19,910,000 yuan.((2019) Su 05 Xing Zhong No.707)

The court held that: J’s behavior constitutes the crime of fraud in financing.J used most of the fund-raising funds for repayment of principal and interest, personal prof ligacy, and gambling.He had no intention of returning the money.This case belongs to the category of illegally raising funds by fraud for the purpose of illegal possession, and the amount is particularly large.The employees Z and C worked and earned commissions because they believed that the project is an investment project that normally pays interest and repays the principal, and has no permanent illegal possession purpose.Thus, their behavior did not constitute a crime of financing fraud.However, Z and C publicized wealth management products, signed investment contracts, and absorbed funds from the public, knowing that Company R does not have a financial license and does not have the qualifications to engage in the business of absorbing public deposits; the two persons had a subjective intention to illegally absorb public deposits, and objectively performed an act of absorbing public deposits, thus constituting the crime of illegally absorbing public deposits.