What crime are being handled for debt evasion?

Question:

I see some people raising capital, paying very high interest rates. At first, they comply with commitments, but only after a short time, they lose their solvency and run away. How will such people be handled?

Reply:

Borrowers paying high interest rates, fleeing when they cannot pay debts may be prosecuted for criminal liability as prescribed in Article 139 of the Penal Code (fraud to appropriate property) or Article 140 (crime of abuse of trust and appropriation. take property).

Borrowing money is a normal civil transaction allowed by law, but in the context of impact, this transaction can be turned into a corrupt, distorted into a violation of the law and will be handled in accordance with the law. the law.

Under the provisions of Article 18 of Decree No. 73/2010 / ND-CP dated July 12, 2010, stipulating the sanction of administrative violations in the field of social security and order, people who have the cheating or fleeing to appropriate other people’s property but not to the extent of being examined for penal liability ”may be subject to a fine of between VND 1,000,000 and 2,000,000.

In addition, the violator is also subject to an additional sanction of “confiscation of material evidences and means” and must compensate for all damage caused by the administrative violation.

In addition to administrative sanctions, borrowers pay high interest rates and run away when they cannot pay debts, depending on each specific case, they may be prosecuted for criminal liability as prescribed in Article 139 of the Penal Code (crime fraud to appropriate property) or article 140 (abuse of credit to appropriate property).

According to the provisions of Article 139, a person who uses “fraudulent tricks to appropriate the property of another person with a value of between two million dong and under 50 million dong or under two million dong, but causing serious consequences or having suffered from administratively sanctioning acts of appropriating or having been convicted of appropriation of property, without criminal record remission but still committing violations ”shall be subject to non-custodial reform for up to 3 years or a prison term of between 6 months and high especially life in prison.

Offenders may also be subject to a fine of between VND 10 million and VND 100 million, confiscation of part or all of their assets, and a ban from holding certain posts, practicing certain occupations or doing certain jobs for 1 to 5 years. .

Thus, in order to deal with a person on this crime, it is necessary to prove that he or she has committed “deceitful acts” when mobilizing capital to appropriate as a cover of a thriving business with many land, vehicles, shops, or “lure” depositors like they are having a big project, having a good place to invest in real estate … so need to mobilize capital even with high interest rates …

Under the provisions of Article 140, a person commits one of the following acts to appropriate property of another person with a value of between VND 4 million and under VND 50 million or less than VND 4 million, but causing serious consequences or having suffered administratively sanctioning acts of appropriating or having been convicted of appropriation of property, without criminal record remission but still committing violations, shall be subject to non-custodial reform for up to 3 years or a prison term of between 3 months and 3 year:

a) Borrowing, borrowing, or renting property of another person or receiving property of another person in the form of contracts and then using deceitful tricks or fleeing to appropriate such property;

b) Borrowing, borrowing, or renting property of another person or receiving property of another person in the form of a contract and has used such property for illegal purposes leading to inability to return the property.

Offenders of trust abuse and appropriation of property may be subject to the highest penalty of life imprisonment and also a fine of between VND 10 million and VND 100 million, banned from holding positions, practicing or working. certain jobs from 01 year to 5 years and confiscated part or all of assets or one of these two penalties.

Master, lawyer Pham Thanh Binh

Hong Ha Law Firm, 114 Phan Ke Binh, Hanoi