Venture Capital, Beware Of Fundraising Trap

Learned from the Ministry of public security, since 2009, all levels of public security organs have intensified efforts to crack down on illegal and criminal fund-raising activities. As of the first quarter, a total of 445 cases were filed, involving 3 billion 850 million yuan, and 245 cases were solved, and 1 billion 784 million yuan was recovered.

However, due to the fact that the illegal activities of illegal fund-raising are still outstanding, the "two traps" are being set up and the techniques are constantly being renovated. The Ministry of public security has issued special warnings to remind the masses to be highly vigilant.

1: in the name of investment real estate, under the influence of the global financial crisis, some real estate enterprises in China are experiencing difficulties in operation and decline in efficiency. Some people advocate that real estate projects are at a low level. They are just involved in investment, especially those under the banner of government projects, what land development projects of civil affairs office buildings, military health care center construction projects, provincial news building contracting projects, Government Reception Center renovation projects, university construction investment or university relocation projects, and so on, and deceive the masses.

Trap 2: in the name of foreign financial services, recently, some investment advisory companies claiming to come from Hong Kong and Taiwan and Southeast Asia have invested in fraud through the use of false trading in the name of overseas investment.

The way of operation is: overseas institutions first entrust agents in the mainland and set up financial investment consulting companies or agents in their name.

In order to help investors engage in overseas financial activities such as futures, foreign exchange and stock markets, they recruit customers through recruiting brokers and developing "offline".

After signing a contract with the client, the agent asks the client to remit the funds into the designated overseas account as soon as possible.

At the same time, they become bait by trading and encourage brokers to trade as much as possible. The aim is to lose customers' control of their accounts through frequent pactions, but virtually all "pactions" are false pactions conducted by foreign institutions on their own and according to market information.

If a customer is questioned or may be subject to investigation, foreign agencies will share funds with their agents and then close down and run away.

Xu Qiyun, editor in chief: