Be wary of fraudulent fraud by foreign companies' representatives in China

The reporter learned from the Ministry of Public Security on the 2nd that in some places, illegal and criminal activities involving the financing fraud of small and medium-sized enterprises in the name of the representative offices of overseas companies in China have occurred, and the development has spread rapidly. The Ministry of Public Security reminds: It is necessary to guard against criminals engaging in criminal activities of financing fraud in the name of the representative office of overseas companies in China.

According to the police, the criminal methods of this kind of financing fraud mainly include the following steps:

In the first step, the criminals fabricated overseas companies or registered offshore companies overseas, and then set up a representative office in China to disseminate information on financing loans to lure companies in urgent need of funds to negotiate;
In the second step, the financing company (ie, the fraudulent company) submitted relevant materials, and after the representative office lied that the qualification review was carried out, it was submitted to the overseas company for approval;
In the third step, the representative office and the financing company signed a "Letter of Intent on Sino-foreign Financing Cooperation", appointed a law firm to handle credit investigations and other related legal matters, and appointed an evaluation agency to analyze and evaluate the investment safety and value-added potential of the financing project. The designated guarantee company guarantees the financing project;
In the fourth step, after the lawyers, appraisal and guarantee institutions have completed the corresponding reports, the representative office will send staff to the financing company in the name of an overseas company to conduct a field visit to the project and make a comprehensive assessment. Financing companies need to pay a large amount of "assessment fee", "lawyer agency fee", "guarantee fee", "foreign party inspection fee" and other fees;
The fifth step, after defrauding various high financing expenses of financing enterprises, the representative office seeks various reasons to interrupt cooperation, such as "the current domestic market economic operation mode cannot be fully in line with international standards", "Chinese and foreign accounting standards are not completely consistent", etc. , Making it impossible for the financing enterprise to recover various up-front costs, thereby achieving the purpose of defrauding the financing enterprise's money.

The police reminded that this type of financing fraud crime has distinct characteristics: the operation method is extremely deceptive; the representative office and the intermediary agency form a fraud chain; the organization is tight, the division of labor is clear, and the ability to evade and attack is strong.

The Ministry of Public Security reminds the general public and small and medium-sized enterprises to raise awareness of prevention, be alert to market risks, and choose formal and legal investment and financing channels; when encountering suspicious financing frauds, please report to the local public security agency in time.