Warning to EB-5 Marketers: China's Supreme People’s Court issued the “Supreme People’s Court on the Trial of Criminal Cases of illegal Fund-Raising Number of Issues Specific Interpretation of Application of the Law”
EB-5 Regional Centers, consultants, attorneys need to be updated on this latest legal developments in China, Mr. Jason Lee, member of the Board of Directors of Beijing Exit-Entry Service Association and policy adviser to Beijing exit-entry authority, Mr. Walter Huang, a Chinese securities and PE expert, Ms. Gillian Shuang, principal of PKF China, and Mr. Lu Sun, VP of MasLink Group, will analyze the new legal interpretations by the Chinese high court at our New York City EB-5 Seminar on January 25, 2011, click to register today. This is a rare opportunity to exchange ideas with experts from China.
The detailed legal interpretation specifically target various illegal fundraising and PE activities conducted by various unlicensed and unregistered agents without proper licence, including brokers and entities from foreign countries. It also addresses the issues of misinformation, mis-representation, and misuse of public media to illegally attract investors in China. The interpretation will have great implications and impacts on EB-5 regional center that are seeking Chinese investments through marketing activities in China.
(Source: China Daily Jan 5, 2011)
To further curb illegal fund-raising and crack down on criminals, the Supreme People's Court and the China Banking Regulatory Commission implemented a new judicial interpretation for trials of such cases. On January 4, 2011, China's Supreme People’s Court issued the “Supreme People’s Court on the trial of criminal cases of illegal fund-raising number of issues specific interpretation of application of the law.”
The number of illegal fund-raising cases in China has been rising since 2008, with about 5,400 suspects arrested in 5,000 cases, a senior police officer warned on January 11, 2011. Liu Dong, deputy director of the economic crime investigation department under the Ministry of Public Security, said police across the country had recovered losses of more than 12 billion yuan ($1.8 billion) from these cases. From 2005 to June 2010, police investigated 10,000 illegal fund-raising cases involving about 100 billion yuan., he said. "Due to the current domestic and international economic environment, the number of cases is still increasing, with an annual rise of 2000 cases and 20 billion yuan of illegally raised funds," Liu told a press conference. "We expect the growth rate of such illegal fund-raising cases and the risks caused by these crimes to remain high in the next few years." The standards will be considered in deciding punishments. Officials also said fund-raising crimes usually involve many victims and tend to result in mass incidents and petitions by the victims. According to the top court, many major illegal fund-raising operations were carried out under the guise of legal companies and projects to entice people to invest.
