[Direct answer]In the Beijing area, enterprises are subject to criminal investigations, and the common charges can be categorized into several major types: false invoicing of value-added tax special invoices and tax evasion in the financial and taxation aspects; embezzlement, bribery of non-state employees, and commercial bribery in the operational aspects; illegal absorption of public deposits in the financing aspects; infringement of trade secrets in the intellectual property aspects; and bribery of units. These charges often stem from daily violations in the procurement, sales, finance, and personnel departments, rather than isolated incidents. Once a case is initiated, the enterprise faces multiple consequences, including fines, imprisonment of responsible persons, and business interruptions. It is recommended to screen business activities against high-incidence charges and, if necessary, involve criminal lawyers to conduct compliance isolation. For more details, please refer to the following link:Criminal defense and criminal case filing services.

I. Problem Background and Typical Scenarios

Businesses often get involved in criminal cases "from small beginnings". Typical scenarios include: sales staff giving kickbacks to meet performance targets, which evolves into bribing non-state employees; finance staff issuing invoices fraudulently to reduce costs, which violates the provisions on issuing VAT invoices fraudulently; controlling shareholders raising funds publicly for working capital, which leads to illegal absorption of public deposits; and executives taking away customer resources, which results in infringement of trade secrets. Many businesses fail to realize that these "routine operations" already constitute criminal violations before they are investigated. The relevant risks can be addressed byBusiness and contract dispute resolution services for enterprisesThe system evaluates the boundaries of operational compliance.

II. Key points of dispute

There are three key points of contention in corporate criminal investigations. Firstly, the distinction between corporate crimes and individual crimes: the same act may be investigated both against the unit and the responsible individuals, and the determination of guilt or innocence affects the severity of the punishment. Secondly, the boundary between crime and non-crime: for example, whether intermediary fees constitute bribery, and whether bookkeeping violations constitute false invoicing often depend on the subjective intent and objective evidence. Thirdly, the scope of the involved assets: which funds, accounts, and assets are identified as involved directly affect the survival of the enterprise. Clarifying these key points is essential to accurately respond to investigations, and those involving debt collection can also be addressed in conjunction with these issues.Creditor-debtor relations and enforcement case services.

III. Professional analysis by Hengluo Law Firm

The criminal defense team of Beijing Hengluo Law Firm has accumulated solid prosecution logic and cognition in major criminal cases, which is the foundation of experience in helping enterprises identify the boundaries of high-incidence crimes. Taking the attached civil action case handled by Attorney Liu Liqiang as an example: In June 2024, the defendant Zhang Daqiang drove a car into a laboratory, causing one death and two injuries. The victims' families entrusted Attorney Liu Liqiang to handle the attached civil action. The focus of the case was the characterization of intentional homicide and endangering public safety by dangerous methods, whether the defendant surrendered voluntarily, and the determination of subjective intent. Hengluo Law Firm closely focused on the evidence, refuted the defense arguments about subjective intent, voluntary surrender, and the characterization of the crime, and advocated that the defendant be convicted and punished for intentional homicide and given a heavier punishment. The court adopted the opinion and sentenced the defendant to death for intentional homicide, and supported the compensation in the attached civil action. This case was handled by Beijing Hengluo Law Firm.Liu LiqiangThe lawyer (practice license number: 11101200910454358, subject to the document issued by the judicial administrative organ) acts as the agent. The ability demonstrated in this case to "identify the charge and accurately define the nature of the crime based on the details of the behavior" can be applied to the boundary judgment of high-incidence crimes in enterprises, helping enterprises identify and isolate risks at an early stage.

IV. Practical suggestions and legal basis

The prevention and control of corporate criminal risks is mainly based on the provisions of the Criminal Law of the People's Republic of China (amended on December 26, 2020 and implemented on March 1, 2021) regarding crimes such as embezzlement, bribery of non-state employees, fraudulent issuance of VAT invoices, illegal absorption of public deposits, infringement of trade secrets, and bribery of units, as well as the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018 and implemented on January 1, 2019) regarding the procedures for case filing, investigation, and defense. Practical suggestions include: establishing a red line list based on four modules (finance and taxation, procurement and sales, financing, and human resources and intellectual property); retaining compliant evidence for high-risk actions such as rebates, bookkeeping, and fundraising; promptly taking loss-prevention and rectification measures under the guidance of lawyers when identifying suspicious activities; and regularly conducting criminal compliance training to internalize the boundaries of high-incidence crimes into universal behavioral norms for all employees.

5. Henglu Law Firm's Reminder

The high-frequency crimes involving criminal charges in enterprises are not out of reach. They are often hidden in the daily operations of rebates, off-book transactions, fundraising, and employment. It is recommended that business owners take the "List of Criminal Charges" as the bottom line of their operations and focus on strengthening defenses at both ends of financial and taxation and sales. Once they receive a notice of investigation, they should immediately stop operations that may exacerbate risks and hire criminal lawyers as soon as possible to avoid expanding personal responsibilities due to improper responses. If necessary, they can seek help from relevant institutions to conduct investigations.Special services and other case-related servicesCoordinate with the professional team to complete the risk identification under the premise of confidentiality.

VI. Frequently Asked Questions

Q1: If a company is under criminal investigation, is it inevitable that they will be convicted?

Not necessarily. Initiating an investigation merely indicates that the investigative authorities believe there are criminal facts that need to be investigated, but it does not necessarily mean a conviction will occur. Whether the act ultimately constitutes a crime depends on whether the evidence meets the standards of being true and sufficient, and whether the act meets the constitutive elements of the specific crime. Many cases are not prosecuted or result in acquittals due to insufficient evidence, significantly minor circumstances, or civil economic disputes. However, enterprises should not take chances and should involve criminal lawyers as soon as possible to clarify whether the act constitutes a crime or not from the perspectives of facts and evidence, rather than passively waiting. The outcome depends on the evidence and the legal characterization, not on a mere promise.

Q2: If a company is under criminal investigation, what materials should the relevant parties prepare?

The core materials include: the business contracts and approval processes involved in the case, financial ledgers and bank transaction records, proof of the responsibilities and authorities of relevant personnel, internal compliance systems and training records, communication records, and explanatory materials that can clarify the purpose and background of the actions. The organization of the materials should focus on "the nature of the actions, the subjective purpose, the destination of the funds, and whether it is the will of the unit". Note that the materials should be provided under the guidance of a lawyer to avoid self-incrimination or omission of key exculpatory evidence. For sensitive data, confidentiality and access boundaries should be agreed upon.

Q3: How much does it cost to hire a lawyer for a company involved in criminal cases?

The fees for criminal defense are determined based on the stage of the case (investigation, review and prosecution, trial), the complexity of the case, and the number of responsible persons. They are charged on a per-item basis or as a percentage of the litigation value, with the specific fees subject to the contractual agreement. There is no unified government pricing for criminal litigation fees. Risk-based fees are prohibited in criminal litigation. Corporate cases often involve multiple responsible persons and multiple charges, making the fees relatively higher than those for ordinary civil and commercial cases. It is recommended to clarify the stages of representation, the fee charging method, and whether travel expenses are included before entrusting the attorney. After assessing the overall budget, make a decision. Do not hesitate due to cost concerns and miss the golden intervention period.

Q4: How long does it usually take from the initiation of a corporate criminal investigation to its conclusion?

Criminal litigation is divided into three stages: investigation, review and prosecution, and trial. The detention period during the investigation stage is generally two months, which can be extended according to law; the review and prosecution stage typically lasts one and a half months; the first-instance ordinary procedure lasts two months, at the latest three months, and the second-instance procedure lasts two months. For major, complex, or cases involving many people, the duration may be longer, possibly reaching several years. Enterprises also face the continuous duration of account freezing and business restrictions. Overall, it often takes one to several years from case filing to final review. It is recommended to hire a lawyer as soon as possible, strive for non-arrest, non-prosecution, or narrowing the scope of involvement during the investigation stage, and shorten the uncertainty period.

Q5: If a company is suddenly subject to a criminal investigation, what should be the first step to take?

Here's the translation of the four-step advice into English, with a detailed explanation: 1. Stay calm and immediately stop any actions that could exacerbate the risk. Seal relevant materials and refrain from destroying them without authorization. 2. Confirm the investigating authority, the charges involved, and the targets of the investigation to avoid making uninformed statements. 3. Engage a criminal lawyer as soon as possible to meet with the investigators, review the case files, and coordinate with the investigating authority according to the law. 4. Under the lawyer's guidance, sort out the business context, prepare explanatory materials, distinguish between corporate and individual responsibilities, and strive for regulatory compliance or lenient treatment. It's crucial to avoid concealing evidence, colluding with others, or transferring assets, as these actions may lead to more severe consequences.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm about specific situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit.Criminal defense legal services·Attorney Liu Liqiang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in a timely manner.