" (Yinfa [1999] No. 41), "illegal fundraising" refers to the issuance of stocks, bonds, lotteries, investment funds or other debt certificates by a unit or an individual, without the approval of the relevant authorities in accordance with the legal procedures. securities or other debt certificates to the public to raise funds, and promises to repay the capital or give returns to the contributors in a certain period of time in money, in kind and in other ways.
Editorial content
Illegal fund-raising is not approved by the relevant departments in accordance with the law, including fund-raising approved by departments without the authority to approve; departments with the authority to approve exceeding the authority to approve the fund-raising, i.e., fund-raisers do not have the subjective qualifications of fund-raising, and promise to repay capital to the contributors within a certain period of time Illegal fund-raising
Payment of interest. In addition to the form of repayment of principal and interest in the form of money, but also in kind and other forms; to the community of unspecified objects to raise funds. Here the "unspecified object" refers to the public, rather than a specific minority; legal form to cover up the essence of its illegal fund-raising. Some leaders for illegal fund-raisers set the stage to circle money, some officials and government departments to support the scene to help the fun and even participate in the share of fertilizer, the two sides sang a song and cooperate with the tacit understanding of the masses in the blink of an eye will be cheated out of their blood money, so why can such a story again and again staged repeatedly tried and true? In the face of certain officials and illegal fund-raising enterprises "chorus", it is difficult to say that the latter must be the former "pull down", it is difficult to say that the former is only "inadvertently" fall into the "living props". It is difficult to say that the former is only "unintentionally" reduced to "live props" and become "accomplices". Public security, judicial organs in accordance with the law to crack down on illegal fund-raising activities, must not let go of these ambiguous "live props officials", as long as they are involved in illegal fund-raising "performances", no matter whether they just charge a fee, or the next there is further operations The government has to bear the party discipline and political discipline and legal responsibility for this.
Edit paragraph main features
The characteristics are: illegal fund-raising nearly 3 billion former chairman of Donghua
I, without the approval of the relevant departments in accordance with the law, including no approval of the department approved by the department approved the fund-raising; approval of the authority of the department exceeded the authority to approve the fund-raising, i.e., fund-raisers do not have the subject of the fund-raising qualifications Second, the commitment to a certain period of time to the contributors of the capital repayment and interest payments. In addition to the form of repayment of capital and interest in the form of money, there are also forms of physical and other forms. Third, to the community of unspecified objects to raise funds. Here "unspecified objects" refers to the public, rather than a specific minority. (d) Concealing the substance of illegal fund-raising in a legal form. In order to conceal their illegal purpose, criminals often sign contracts with investors (victims), disguised as normal production and business activities, to maximize their ultimate goal of fraudulent funds.
Editorial section of the types of illegal fund-raising
According to the relevant provisions of the Notice on Further Combating Illegal Fund-raising and Other Activities (Yinfa [1999] Carrying out the Prevention of Illegal Fund-raising
No. 289), "illegal fund-raising" can be summarized as the following: (1) through the issuance of securities, membership cards or debt certificates and other forms of absorption of funds. ⊙The more common ones are: the issuance or disguised issuance of stocks, bonds, lotteries, investment funds and other rights certificates or illegal fund-raising in the name of futures trading or pawning. Illegal fund-raising through share subscription, dividend distribution, entrusted investment and entrusted financial management. Illegal fund-raising through membership cards, membership certificates, seat certificates, discount cards, consumer cards and other means. (2) Dividing assets such as properties and real estate in equal parts and raising funds at high interest rates by selling the right to dispose of their shares. ⊙ The latest changes are: illegal fund-raising through the sale of its share and the promise of sale-and-leaseback, sale-and-buyback, and regular rebates. (3) Illegal fund-raising in the form of the use of private clubs; ⊙ Recent changes: fund-raising activities through the use of underground money mills. (4) Illegal fund-raising in the form of signing economic contracts such as commodity distribution. ⊙ Commonly: Illegal fund-raising in the form of merchandise sales and leasebacks, buybacks and transfers, membership development, merchant franchising and the "fast points method". (5) Fund-raising in the form of issuing or disguising lottery tickets; (6) Illegal fund-raising in the form of utilizing pyramid schemes or clandestine conspiracies; (7) Illegal fund-raising in the form of utilizing the development of orchards or estates. ⊙ For example, illegal fund-raising in the name of planting, breeding, project development, estate development, ecological and environmental protection investment. ◆ In addition to the above maneuvers, there are also the latest changes. ⊙ Illegal fund-raising in the form of "virtual" products constructed by using modern electronic network technology, such as "electronic stores", "electronic department stores" investment commissioned operation, due repurchase and other ways. ⊙ The use of the Internet to establish investment funds. ⊙ The use of the Internet to set up investment funds in the form of illegal fund-raising; ⊙ the use of "electronic gold investment" in the form of illegal fund-raising.
Edit paragraph identification method
Illegal fund-raising in a variety of forms, hidden and deceptive is increasingly strong, how to identify and prevent illegal fund-raising? The relevant departments suggested: 1. To recognize the nature and harm of illegal fund-raising, improve the ability to identify and consciously resist all kinds of temptation. Convinced that "pie in the sky will not fall", "high returns", "get rich quick" investment projects to calmly analyze, to avoid being cheated. 2. To combine the basic characteristics of illegal fund-raising, mainly to see whether the qualifications of the main body is legal, as well as its MLM impression
Engaged in fund-raising activities whether to obtain the relevant approvals; whether the promise of return, illegal fund-raising behavior is generally characterized by a certain proportion of the promised return of the fund-raising. 3. To enhance the rational investment awareness. High investment is often accompanied by high risk, unregulated economic activities are embedded in this huge risk. 4. To enhance the participation in illegal fund-raising risk-sharing awareness. Illegal fund-raising is a violation of the law, and the funds and related benefits invested by participants in illegal fund-raising are not protected by law. They should be carefully recognized and invested cautiously. Common practices and tricks of illegal fund-raising (1) Promise of high returns, fabricate the myth of "pie in the sky" and "becoming rich overnight". The lure of profiteering is the only way for all criminal fraudsters to deceive the masses. Unlawful elements in order to attract more people, often promising investors to reward, points in the form of rebates to give high returns. In order to deceive more people to participate in fund-raising, illegal fund-raisers began to cash in full and on time the principal and interest of the first investor, and then is to tear down the east wall to make up for the west wall, after the fund-raisers to cash in the previous principal and interest, and so on to reach a certain size, then secretly transfer funds, absconding with the money. (2) fabricate false projects or enter into a trap contract, step by step will be cheated into the quagmire. Unlawful elements to plant cactus, spirulina, aloe vera, dragon fruit, Cordyceps sinensis, breeding ants, black guinea pigs, sika deer, poultry recycling, etc., in the name of cheating the masses of funds; the development of the so-called high-tech products in the name of absorbing public deposits; some fabricated planting trees and forests, capital building and other false projects, to deceive the masses of "investment in stock! "Some stores to rent back, etc., the promise of high fixed income, to absorb public deposits. (3) Confusing the concept of investment and finance, so that the masses in the dazzling new terms before losing judgment. Unlawful elements have the use of electronic gold, investment funds, network speculation in foreign exchange and other new terms to confuse the masses, falsely referred to as the new investment tools or financial products; some of the use of monopoly, agency, franchise chain, consumer value-added rebates, e-commerce and other new ways of doing business, to deceive the masses to invest. (4) Pretense, the use of legal trappings or celebrity effect to deceive the public trust. In order to give the criminal activities put on a legal cloak, the lawless elements often set up companies, complete business licenses, tax registration and other formalities to cover up their illegal purposes, without the actual business or investment projects. These companies take in luxury office buildings to rent office space, hiring celebrities for advertising and other increased publicity Cross-provincial illegal fund-raising
, to deceive the masses trust. (5) Utilizing the Internet, committing crimes and evading crackdowns through virtual space. Unlawful elements rented offshore servers to set up a website or located in a different place, the development of the head of the general use of code names or screen names. Some also use websites, blogs, forums and other online platforms and instant messaging tools such as QQ and MSN to disseminate false information and lure the public into falling for it. Once investigated, the following line does not operate in accordance with the rules, etc., under the pretext of quickly closing the site, absconding with the money. Before absconding also issued the so-called notice to the downline staff to remember their own performance, the promise of future re-returns, as a means of stabilizing the deluded masses. (6) The use of mental and physical coercion or affectionate enticement, constantly expanding the victim group. Many participants in illegal fund-raising are involved in the low-risk, high-return persuasion of relatives and friends. Criminals often take advantage of the relationship between relatives, friends and fellow villagers to illegally obtain funds by luring them with high interest rates. Some people who have joined the pyramid scheme, under the mental brainwashing or physical coercion of the pyramid scheme organization, in order to complete or increase their own performance, they do not hesitate to use their relatives and geographic ties to solicit their relatives, friends, classmates or neighbors to join them, and some of them do not even spare their own parents, spouses and children, which results in a turning of the tide of kinship and leads to a human tragedy.
Editorial section of the three new features of illegal fund-raising
In the first half of this year, Hebei *** occurred suspected of illegal fund-raising cases 13, are using direct absorption of public deposits or fund-raising fraud form, which can be broadly classified into four categories of debt, equity, merchandising, production and operation, with three new features: First, the illegal fund-raising method changes in a variety of ways. Criminals mostly through the registration of legitimate companies or enterprises, under the banner of responding to national industrial policy, support for the construction of new rural areas, etc., by the traditional planting, breeding to engineering projects, scientific and technological development, investment in shares, consumer rebates and other ways to transform.
The second is the intertwining of multiple crimes. Criminals will be illegal fund-raising and pyramid schemes, contract fraud and other economic crimes intertwined together, using pyramid schemes to first brainwash the fund-raising personnel, promising a variety of preferential conditions and profit model, and then lure the fund-raising, layer by layer under the set. Generally in the early stage of fund-raising, criminals tend to actively "honor" the promise of return, to win the trust, to attract more people to join, the scale of fund-raising rapidly geometrically enlarged. Third, the illegal fund-raising publicity at all costs, the use of media momentum. Such as hiring celebrity endorsement, published in some media interviews, the use of reports to promote the "performance" of illegal enterprises; part of the illegal fund-raising money into public welfare or donations; employing salespersons scurrying into the community to disseminate leaflets, dissemination of information on fund-raising; organizing a variety of activities, and cashing in on-site bonuses, so that participants first taste the sweetness of the first for the Illegal fund-raising activities to publicize the "present". [1]
Edit paragraph engaged in illegal fund-raising activities will be subject to legal penalties
In addition to illegal fund-raising activities, in accordance with the provisions of the Commercial Bank Law, the Insurance Law, the Securities Law, the Securities and Investment Funds Law, the Banking Supervision and Administration Law, and the "Illegal Financial Institutions and Illegal Financial Business Activities Prohibition Measures," and other legal and administrative regulations, to be given the confiscation of illegal income, fines, and the prohibition of the illegal financial institutions and illegal financial services. In addition to administrative penalties such as confiscation of illegal income, fines, and banning of institutions illegally engaged in financial business, those constituting a crime shall also be investigated for criminal responsibility in accordance with the law. How a small ant sets to 3 billion
Participation in illegal fund-raising activities is not protected by law. The relevant laws clearly stipulate that losses suffered as a result of participation in illegal public deposit-taking and illegal fund-raising activities shall be borne by the participants themselves, and the debts and risks incurred shall not be passed on to state-owned banks and other financial institutions as well as to any other units that are not involved in illegal public deposit-taking and illegal fund-raising activities. If there is any illegal property remaining after the debts and liabilities have been cleared and retired, it shall be confiscated and handed over to the central treasury on the spot. In the process of outlawing illegal public deposit-taking and illegal fund-raising activities, local governments are only responsible for organizing and coordinating the work, and cannot take financial allocations to make up for the losses caused by illegal fund-raising.
Editing the main means
1, illegal issuance of securities. The People's Bank of China's "Rectification of Indiscriminate Fund-raising Indiscriminate Approval of Financial Institutions and Indiscriminate Financial Business Implementation Program" (July 29, 1998) stipulates that, "Enterprises that conduct paid fund-raising through the public issuance of stocks, corporate bonds, and other forms of Henan Shangqiu People's Congress deputy Wu Zhenhai illegally raised 610 million
fund-raising must be carried out in accordance with the provisions of the relevant laws and administrative regulations, and be approved by the approval of the competent department of the State Council." At the same time, it is stipulated that "without approval, shall not break through the issuance plan without authorization, shall not establish or approve the issuance of unplanned coupons without authorization. Those who violate the regulations shall be held legally responsible in accordance with the provisions of the Regulations on the Administration of Corporate Bonds." If the above Implementation Program is strictly interpreted, at this stage of China's housing mortgage securities operation, before clear and specific regulations are issued, it is likely to be recognized by the relevant departments as suspected illegal fund-raising. For example, on October 6, 1998, the Securities and Futures Commission (SFC) issued the "Notice on the Investigation of the Reform of Enterprises to be Issued and Listed" which stipulates the rule of "reorganization before issuance", and then the enterprises will raise funds to set up a company through the issuance of stocks or "equity cards" similar to stocks. The same behavior is suspected of illegal fund-raising. (2) Illegal issuance of debt certificates to unspecified social objects. This is a relatively common type of illegal fund-raising case, in which the illegal fund-raiser raises funds by issuing debenture certificates to unspecified social targets and promising to pay high returns upon maturity. 3. Illegal issuance of membership cards and membership certificates: After the issuance of the Circular of the General Office of the State Council on Immediately Stopping Illegal Fund-raising Activities through the Issuance of Membership Certificates, the law stipulated that the issuance of membership certificates of all kinds belonged to illegal fund-raising, and it wasn't until November 11, 1998, that the People's Bank of China and the State Administration of Industry and Commerce issued the "Trial Measures for the Management of Membership Cards," stipulating the approval procedures for the issuance and trading of membership cards. After the approval procedures for the issuance and trading of membership cards, the issuance of membership cards in accordance with the Trial Measures for the approval process is not illegal fund-raising. 4. Equalization of property, real estate and other assets and sale of share disposal rights. The Ministry of Construction "on not to a square meter unit of property rights issued by the" Certificate of Housing Ownership "notice" ((94) building housing management word No. 09) provides that the real estate property rights management department and real estate development companies issued a square meter of property rights certificate, in violation of China's capital-raising laws and regulations, is an illegal fund-raising. 2001 "... Measures for the Administration of the Sale of Commodity Housing," Article 12 clearly stipulates that "commercial residential units are sold by sets, and may not be divided and sold in pieces." 5, the use of civil society form of illegal fund-raising. For example, the establishment of foundations, mutual aid societies, savings clubs, rural disaster relief and poverty alleviation savings clubs, "standard clubs" and other illegal fund-raising or disguised deposit-absorbing activities have not been approved by law, for which the People's Bank of China's "Rectification of Indiscriminate Fund-raising, Indiscriminate Approval of the Establishment of Financial Institutions and Indiscriminate Implementation of the Program for the Financial Business" has made clear provisions on the approval procedures and the scope of the business licenses. The regulations of the program are as follows 6. Illegal fund-raising in the form of signing economic contracts such as commodity distribution. For example, Henan Hundred Flowers Group signed a "chain marketing agreement" with the public in the form of illegal fund-raising, as well as real estate developers through the sale of commodities in the sale of capital back illegal fund-raising. 7. Fund-raising in the form of issuing private lotteries or lottery tickets in disguise. The Circular of the State Council on Strengthening the Management of the Lottery Market (December 9, 1991) stipulates that: "The authority to approve the issuance of lotteries is centralized in the State Council. The people's governments of provinces, autonomous regions, municipalities directly under the central government, municipalities with separate plans and relevant departments of the State Council that need to issue lotteries shall submit their issuance plans and issuance methods to the People's Bank of China half a year in advance, which shall be reviewed by the People's Bank of China and then submitted to the State Council for approval." The People's Bank of China's Circular on Strengthening the Management of the Lottery Market (January 25, 1999) stipulates that subordinate acts are illegal fund-raising: "(a) Issuing lotteries in disguise under the name of prize sales; (b) unauthorized issuance and sale of lotteries by private individuals; (c) issuing overseas lotteries within the territory; and (d) issuing lotteries in the form of pyramid schemes. " 8. Illegal fund-raising in the form of utilizing pyramid schemes or secret conspiracies. The Circular of the State Council on the Prohibition of MLM Business Activities (Guo Fa [1998] No. 10) explicitly prohibits enterprises from adopting MLM business practices, while explicitly prohibiting the following disguised forms of MLM: "(a) transferring MLM from the open to the underground; (b) conducting MLM in the form of win-win system, computerized row network, frame marketing, etc.; (c) pretending to be monopoly, agency, franchising operation, direct marketing, chain, network sales and other names for disguised pyramid schemes; (4) the use of membership cards, savings cards, lotteries, vocational training and other means of pyramid schemes and disguised pyramid schemes to fraudulently obtain membership fees, joining fees, licensing fees, and training fees; and (5) other acts of pyramid schemes and disguised pyramid schemes." State Administration for Industry and Commerce, the Ministry of Public Security, the People's Bank of China issued on February 17, 2000, "on cracking down on pyramid schemes and disguised pyramid schemes and other illegal business activities," and clearly identified several disguised pyramid schemes as illegal business practices. 9, the use of orchards or manor development in the form of illegal fund-raising. 1998 or so in some areas to develop "orchards", "manor" in the name of illegal fund-raising phenomenon, such as an orchard development company by publicizing " As long as the investment of 7,800 yuan, with 50 years of private orchards, 33 longan trees "for illegal fund-raising, in response to the above illegal phenomenon, the General Office of the State Council issued "on strengthening the management of land transfers and strictly prohibit speculation in the land of the notice" (State Office of the [1999] No. 39) expressly prohibit the use of land development for illegal fund-raising, and provides: "Land for agricultural and forestry development must be subject to land registration in accordance with the law, with clear planning requirements and qualifying conditions for transfer and subletting, and may not be divided and transferred or sublet without authorization." The People's Bank of China's Circular on Strengthening Credit Management of Agricultural and Forestry Development Projects and Strictly Prohibiting the Use of Land Development and Land Transfer in the Name of Illegal Capital Raising (Yinfa [1999] No. 254) also contains relevant prohibitions. The above is the People's Bank of China "on further combating illegal fund-raising and other activities of the Notice" (Yinfa (1999) No. 289) expressly summarized a number of illegal fund-raising case type. 11. Educational reserves. At the previous stage, a large number of private schools around the world to take the education reserve education fees, that is, students (families) are required to pay a large amount of money (100 ~ 300,000), known as the "education reserve", the school at the same time, the school promised that students do not have to pay other fees during the school period, and in the original number of students can be returned to the original amount of money paid when they leave the school. "The school also promises that students will not have to pay any other fees during their stay in the school and that they will be able to return the amount of money they have paid when they leave the school. With the outbreak of cases in Panyu, Hunan, Wuhan and other places where huge amounts of education reserve could not be returned to the parents of the students, the governments of various places introduced policies to prohibit private schools from charging any form of education reserve, such as the Guangdong Education Department's Guangdong Education Policy (1999) No. 2 document. Prior to this, Article 9 of the Provisions on Firmly Stopping Indiscriminate Charging of Fees in Primary and Secondary Schools, issued by the State Education Commission on May 3, 1991, stipulates: "The principle of voluntariness, ability to measure up and benefit to the masses should be implemented in the pooling of funds to run schools, in accordance with the relevant provisions of the local people's government. Primary and secondary schools may not, on their own, rigidly apportion fees to the masses and society, nor may they levy collection fees on students." Article 37 of the Law on the Promotion of Private Education stipulates, "The items and standards of fees charged by a private school to educated persons receiving academic education shall be formulated by the school, reported to the relevant authorities for approval and made public; the items and standards of fees charged to other educated persons shall be formulated by the school, reported to the relevant authorities for the record and made public. Fees collected by private schools shall be used mainly for educational and teaching activities and improvement of school conditions." Therefore, if a private school collects educational reserves from students' parents without the approval of the relevant departments and public announcement, it should be recognized as illegal fund-raising. 12. Local governments issue or disguise local government debts. Article 28 of the Budget Law expressly provides that "except as otherwise provided by law and the State Council, local governments shall not issue local government bonds". Therefore, the "rectification of indiscriminate fund-raising indiscriminate approval of the establishment of financial institutions and the implementation of indiscriminate financial business program" clearly prohibits the above illegal fund-raising behavior. 13. Illegal fund-raising in the name of "investment promotion". The State Administration for Industry and Commerce (SAIC) "Emergency Notice on the Investigation and Handling of Issues Relating to Illegal Fund-raising by Enterprises in the Name of Investment Promotion" (Industry and Commerce Enterprise Word [1998] No. 272) provides for the resolute investigation and handling of illegal fund-raising by enterprises in the name of "investment promotion" and stipulates that: "The administrative authorities for industry and commerce at all levels shall strictly In accordance with the provisions of the approved business scope of enterprises, shall not be approved "investment" and similar non-standard terms."
Editing illegal securities
In order to expose the harm caused by illegal fund-raising to the society and the people, guide the masses to enhance legal awareness, risk awareness and recognition ability, effectively curb the illegal fund-raising criminal activities, and maintain social stability. At present, illegal securities activities mainly refers to the illegal issuance of shares and illegal operation of securities business. Illegal issuance of stocks refers to the unauthorized public and disguised public issuance of stocks without the approval of the securities regulatory authorities. Unauthorized public offering of stocks refers to the act of issuing stocks to unspecified objects or issuing stocks to specified objects with an aggregate of more than 200 shareholders without reporting to the Securities and Futures Commission (SFC) for approval in accordance with the law. Disguised public offering refers to the act of issuing shares to the public by public means such as advertisements, announcements, telephone calls, letters, etc. or disguised public means without reporting to the SFC for approval in accordance with the law, as well as the act of transferring the shares to the public by the company's shareholders on their own or by entrusting others to transfer the shares to the public in a public manner. In the case of stock transfer to a specific target, without the approval of the Securities and Futures Commission, the company's shareholders shall not exceed 200 after the stock transfer, and the violation of this legal provision is also a disguised stock offering. Illegal operation of securities business refers to securities underwriting, brokerage (agency trading), cross-border illegal fund-raising securities investment consulting and other securities business conducted by institutions and individuals without the approval of the Securities and Futures Commission (SFC). Illegal securities activities mainly include: luring the public to buy the so-called original shares or shares of various types of funds, falsely claiming that these securities will be listed on stock exchanges at home and abroad; peddling the so-called original shares or shares of funds; illegally promoting the sale of unlisted company shares or agency trading of unlisted company shares to the public in the name of so-called investment consulting organizations, property rights brokerage firms, representative offices of foreign investment firms in China, or even property rights exchanges or stock exchanges without the approval of the SEC. or agent to buy and sell shares of unlisted companies; with high returns as bait, in the name of securities investment, defrauding the masses of money. The public can identify illegal securities activities from two aspects: one is to identify from the issuance method of securities, whether it is equity (stocks), bonds or funds, its issuance method is not to take the previously mentioned public offering, if it takes this way, we must look at whether to obtain the relevant approvals of the relevant state departments, you can tell whether it is an illegal behavior. Secondly, from the intermediary organization that issued the securities to identify, to see whether the intermediary organization engaged in securities underwriting, agent trading activities, whether it has obtained the approval of the Securities and Futures Commission, if not approved, it can be identified as an illegal securities business. According to the provisions of the Securities Law, shares, corporate bonds and other securities issued publicly in accordance with the law shall be listed and traded on the stock exchange established by law or transferred to other securities trading venues approved by the State Council. The so-called "original shares", "shares to be listed overseas" and "Golden Exchange Fund", "Swiss **** with the Fund " "Goldfinger Fund" and so on is a complete scam, investors must have self-protection awareness, do not take a chance.
Edit this section of the trusteeship afforestation
"Trusteeship afforestation" is a phenomenon that emerged in the last two or three years, and its basic mode of operation is generally through leasing, contracting, or other means of obtaining the right to use the forest land and ownership of the forest, and then transferred to the community of scattered investors, and then the investors will be entrusted to the company to operate the forest land and trees. The investors then entrust the forest land and trees to the company for management. This kind of transfer and trusteeship as an integrated business model is extremely risky. At present, it has been revealed that some companies have committed illegal acts in the process of operation and caused great economic losses to investors. These "trusteeship afforestation" companies mainly use the following several deceptive means: First, the company put on a legal cloak, generally strongly publicize the "trusteeship afforestation" mode is to respond to the spirit of the Central Government's Document No. 9, is the state to encourage the participation of social subjects in forestry construction and investment in the new model, to deceive investors. The model to deceive investors. Secondly, the forest right certificate is used as a cover to win the trust of investors. "The company promises to transfer or help investors to apply for forest right certificates uniformly printed by the State Forestry Administration after purchasing trees, so that investors believe that trees are real and their rights and interests are guaranteed, which is not the case in reality. Third, exaggerated forest growth and forestry investment return rate. Most of the "trusteeship silviculture" companies in the publicity promised a high rate of return on investment or timber output, and even publicize the zero risk of investment in forestry. In reality, the growth of trees is affected by natural conditions, species selection, management measures, natural disasters and other factors, "hosting afforestation" company in the publicity, to conceal the risks of investing in forestry to investors. Fourth, the company promises to have a professional management team and mechanical equipment, responsible for the careful management of the trees purchased by the investor. In fact, it is difficult to monitor the fulfillment of such promises, and some companies simply do not have the so-called professional management team, nor do they implement normal forestry and management measures, and the growth of trees is also very poor. Fifthly, it is publicized that forest logging is not controlled by logging quota indicators. This is seriously inconsistent with the provisions of existing laws and regulations. The Forestry Law stipulates that, except for rural residents logging their own land and individually owned sporadic forest trees in front of and behind their houses, logging must apply for a logging license, and log according to the area, the number of plants, the species, the period, and the method of harvesting stipulated in the license, and the number of plants, species, period, and the method of harvesting of the small ants. But some of the "trusteeship afforestation" company to "who made who have" as an excuse, claiming that the parties want to harvest can be harvested, in fact, in the deception of investors. Sixth, dress up the company's business image, to win investors' goodwill: in important commercial locations to rent high-grade office buildings as the company's business premises, to create an image of business strength; claiming to have a group of experienced professional and technical managers, to create professionalism; the formation of various types of supervisory committees and so on, reflecting the investor's right to supervise the company. And in fact, this is part of the scam. The Forest Law stipulates that the right to use timber forests, economic forests, fuelwood forests and their forest land, the right to use forest land in logging tracks and fire tracks of timber forests, economic forests, fuelwood forests, and the right to use other forests, timber and other forest land stipulated by the State Council may be transferred in accordance with the law. Other than that, the right to use other forests, trees and other forest land may not be transferred. At present, the State has not yet formulated specific methods for the transfer of such rights; some provinces have formulated local regulations, which can be followed. The State respects the management objectives of forest operators and safeguards the legitimate rights and interests of forest operators, but there are specific legal and policy provisions on forest logging. In accordance with the Forest Law, logging is strictly prohibited in special-use forests for monuments and revolutionary memorial sites, and in forests in nature reserves; except for rural residents logging sporadic forests personally owned on their own land and in front of and behind their houses, logging must apply for a logging permit and log according to the provisions of the permit. In accordance with the provisions of the Forest Law and its implementing regulations, those who apply for logging need to submit to the local forestry department at or above the county level application documents including the purpose of logging, the location, the forest species, the forest condition, the area, the volume of storage, the method and renewal measures, etc. The forestry department at or above the county level will, in accordance with the legal licensing authority, examine and issue the logging license within the approved logging limit and annual timber production plan. The license is issued by the competent forestry department at or above the county level in accordance with the statutory licensing authority within the approved logging limit and annual timber production plan.