In recent years, a number of third-party platforms, under the banner of “innovation” for “shopping back”, “consumption equals making money”, “you consume me to pay back money”, have committed themselves to high, if not full, levels of, reimbursement of consumption, membership fees, etc., in order to attract investment from consumers and businesses. This type of “consumer-return gain” is different from normal business-revenue promotion activities and has a high risk risk。

Case:

THROUGH THE OFFICES OF A COMPANY, THE DEFENDANT, ONE OR TWO INDIVIDUALS, USING THE ANNUALIZED RATE OF RETURN 20%-45% AS BAIT UNDER THE GUISE OF “CONSUMER BUY-BACK” AND “CARRY-IN” (CARRY-IN) SALES WITHOUT THE RELEVANT QUALIFICATIONS, INTRODUCED THE “COMMODITY ORDER”, “CONSUMER ORDER”, “ASSETS ORDER”, “CAPITAL ORDER” AND “CAPITAL ORDER” MODELS TO INDUCE PARTICIPANTS TO INVEST AT A SINGLE PRICE OF $15,000, AND COMMITTED TO CO-BENEFITS RANGING FROM $21,600 TO $24,000, TO ABSORB FUNDS TO THE UNSPECIFIED PUBLIC AND TO PAY HIGH INTEREST ON PRE-ASSEMBLY PARTICIPANTS WITH THE NEWLY ABSORBED FUNDS. AT THE TIME OF THE INCIDENT, A TOTAL OF MORE THAN $20 MILLION HAD BEEN COLLECTED FROM 296 PERSONS AT ONE OF WANG ' S OFFICES AND HUANG ' S OFFICE。

Case resolution:

In the above-mentioned cases, the company attracted a large number of investors by means of a return on consumption. Initially, companies performed well and investors received returns, attracting more people. However, as the scale of investment continues to grow, companies fail to generate sufficient profits to pay for the return of consumption, which eventually leads to a breakdown of the financial chain. The case highlights the high risk and fraudulent nature of illegal fund-raising for consumer return。

Performance patterns and characteristics of the consumption return interest suspected of illegal fund-raising:

1. The establishment of companies to raise funds in the form of the return of goods. The company undertakes to buy back goods or services at a price higher than the purchase price for a certain period of time. However, at the end of the buy-back period, the company did not meet its buy-back commitments, resulting in an investor loss。

Third-party platforms, in the name of entrepreneurship innovation, commit themselves to high and even full returns of consumption, membership fees, etc., as a way to attract investment from consumers and businesses. However, these platforms often do not have the proper physical economy and benefits that match their promised returns, and the functioning of funds and high returns are difficult to sustain in the long term。

iii. Members and affiliated parties pay an entry fee of a certain amount or a disguised entry fee to benefit from the downline of outreach; or require a “guarantee” to be paid through the development channel and a “guarantee” to be divided; some pass through the back of the website, which is freely filled by the members and is then returned in per cent instalments. These funds are often controlled by the platform, with a risk of diversion and a risk of a roll-out。

Risk tips:

The public is aware of the dangers of these consumption patterns:

Look at the legitimacy of financing. In addition to obtaining a business licence, it also depends on obtaining a permit for financial operations from the State financial administration。

Second, we look at the publicity. See if the publicity contains or implies “guaranteed, risk-free, high-yielding, secure and uncompensated”。

Look at the business model. There are no physical projects, the authenticity of the projects, the destination of the funds, the manner in which they are made。

The sky won't fall out of pie! These non-value investments, which are all a dream of a yellow sorghum, require a high level of vigilance and call on the public to identify the “consumption-return” trap in a calm manner, away from illegal fund-raising