Recently, the People's Procuratorate of Linping District, Hangzhou City, made a decision to arrest Gao Bin, the former legal representative, chairman and general manager of Shanghai Jinglin Equity Investment Management, in accordance with the law. The case is being further processed.
Greenwoods is a well-known private equity firm in China.
A private placement** refers to an investment set up by raising funds from investors in a non-public manner**. The legal risks of private placement are mainly in two aspects: capital and export.
First, the criminal legal risks of funds are mainly related to the crime of illegally absorbing deposits from the public and the crime of fund-raising fraud.
1. The legal risk of the crime of illegally absorbing deposits from the public.
Since private placement** is a private placement, it should meet the requirements of "non-public" and "offering to specific qualified investors". Two characteristics. If the funds are raised from an unspecified entity, it may constitute the crime of illegally absorbing deposits from the public. For example, through **, WeChat, lectures, promotion meetings, analysis meetings, and online consignment recommendations to unspecified targets.
2. If a private equity company openly raises funds from unspecified entities and has the purpose of illegal possession, it constitutes the crime of fundraising fraud.
Whether there is an illegal possession is the key to distinguishing the crime of illegally absorbing deposits from the public and the crime of fund-raising fraud.
Second, the criminal legal risks of the export of funds mainly involve the crimes of misappropriation of funds and embezzlement.
According to the Regulations on the Supervision and Administration of Private Investment, private equity practitioners shall not misappropriate or embezzle property, and shall not use property to seek benefits for themselves or others.
1. If an employee of a private equity company misappropriates funds in violation of the law, it constitutes the crime of misappropriation of funds.
First of all, misappropriation of unit funds for activities other than profit-making activities and illegal activities, such as for consumption and entertainment activities, where the amount reaches 100,000 yuan, and the period of time has not been repaid for more than 3 months.
Second, misappropriation of unit funds for profit-making activities, where the amount reaches 100,000 yuan, constitutes a crime regardless of the length of time.
Finally, where a unit's funds are misappropriated to carry out illegal activities, regardless of the amount and time of misappropriation, it is found to be the crime of misappropriation of funds.
2. If the employee of the private equity ** company illegally occupies the purpose, it constitutes the crime of embezzlement.
For example, if a person absconds after misappropriating funds, or squanders them, and refuses to repay them after being discovered, it may be found that he has the purpose of illegal possession, and it should be found to be the crime of embezzlement in public office. According to the latest interpretation, the crime of embezzlement of 30,000 yuan can constitute a crime.