Recently, our firm received a telephone call. A client had lost substantial sums of money on a loan portfolio platform and wanted to recoup their losses as much as possible.
In 2012, P2P net a loan platform, sprang up and flourished to become the new financial player. However, due to the absence of detailed laws and regulations, P2P net loan platform inevitably got caught up in a scandal, where a large number of suspected illegal fund-raising took place on their platform. In 2014, those under the banner of the P2P net platform took part in a Ponzi scheme, though some may have done so by accident. In fact, some of the participants were illustrious, generally respectable, large companies with deep pockets. This caused alarm to investors.
Many Investors only want to know, which PSP lending platform they should invest in. That is not the purpose of this article. In this article, one of the authors answered a friend’s questions and discussed with them the unfortunate collapse of the investment in a P2P lending platform. It will also look at remedial measures.
Firstly, one needs to register with the public security organs leading the investigation. The reason for this is so that later, when the courts in apportion compensation, one can receive what they are due.
Secondly, one needs to preserve relevant evidence. The evidence includes investors and companies involved contracts and other legal documents, bank payment vouchers and anything else of relevance. Additional evidence may be required to prove the identity of the investor and the investment amount of the investment for the apportionment mentioned above.
Thirdly, try to get in touch and exchange information with other investors. When necessary, the group of investors can appoint a representative to communicate effectively on their behalf with the authorities.
We recommend that investors seek a lawyer. These matters may seem simple, but the specific operation of recovery will likely face many problems and formalities. For example, when reporting, how to find the correct handling organ and handling department, which can be something very time consuming for those unfamiliar with the system; how to progress a case to a different stage; how to effectively communicate with the relevant government departments; all of which is difficult for investors to do.
Now, many investors gathered together in groups of dozens or even hundreds of people in front of public security offices with judicial petitions, hoping to push the cases forward by pressure. This is the wrong way to do things. This method is not only time-consuming effort of investors, also uses up public resources for crown control, in a way that will not benefit the crowd.
Instructing professional representation is the best way to deal with the public security and judicial organs. With a professional representative, things can be done in a more civilised manner, without resorting to mob tactics.
In addition, illegal fund-raising and fund-raising fraud cases are very complicated. Processing times will be very long; from the case reaching the public security organ to obtaining the verdict from the court, one to two years is normal. Entrusting such a case to a lawyer will safeguard the interests of investors.
Author: Chris Wang Yu