Abstract:
At present, China's legal framework still lacks clear legal provisions on the litigation status of investors and the effectiveness of investment contracts in illegal fund-raising cases, which makes it difficult to unify the judgment standards of different cases. In addition, such cases are generally characterized by the intersection of punishment and people, and the lack of corresponding norms in handling procedures has become a serious problem in judicial practice. In view of the litigation status of investors, it is better to define the investors in the crime of fund-raising fraud as victims and the investors in the crime of illegally absorbing public deposits as witnesses by combining the principles of protection of legal interests, legitimacy of criminal victims and favorable judicial practice. As to the validity of investment contracts, the investment contract in the crime of fund-raising fraud can be regarded as invalid contract in combination with the spirit of the Civil Code and criminal legislation. In the crime of illegally absorbing public deposits, the validity and revocability of investment contracts should be specifically distinguished according to the subjective intentions of the parties. At the same time, it is suggested to set up announcement procedure and litigation representative system to fully protect the legitimate rights and interests of investors and third parties involved in illegal fund-raising cases.