[Direct answer]In the Beijing area, after a unit is defrauded, it can report the case to the public security organ and file a complaint, and pursue criminal responsibility for the crime of fraud through criminal procedures. It can also initiate an incidental civil action in criminal litigation to recover losses. According to Article 110 of the Criminal Procedure Law of the People's Republic of China, any unit or individual who discovers a criminal fact or a criminal suspect has the right and obligation to report the case to the public security organ or file a complaint; Article 112 requires the public security organ to promptly review the case according to its jurisdiction, and if it considers that there are criminal facts requiring criminal responsibility, it shall file a case. Before reporting the case, the unit should fix the contract, transfer records, and communication records; according to the Opinions of the Ministry of Public Security on Reforming and Improving the Case Acceptance and Filing System, the review period for filing a case shall not exceed 3 days, and for cases requiring verification, it shall not exceed 7 days. For major and difficult cases, it may be extended to 30 days. For more details, please refer to the relevant provisions.Criminal defense and criminal case filing services.

I. Problem Background and Typical Scenarios

In practice, corporate fraud often takes the following forms: after signing a contract, the other party collects the advance payment and then disappears or misappropriates the funds; collusion between internal and external parties to fabricate transaction links and embezzle funds; fraudulent investment platforms and trade scams to defraud corporate funds; and executives and financial personnel misappropriating funds by fabricating expenses. Corporate decision-makers often struggle with the dilemma of "whether to report the case to the police first or file a lawsuit first", fearing that filing a case might tip off the fraudsters, or that internal approval and audit delays might lead to evidence loss and funds transfer. Criminal charges and civil litigation are not mutually exclusive. The key is to choose the main path based on the evidence situation and promptly fix core materials such as contracts, transaction records, and communication records.

II. Key points of contention

The disputes in such cases focus on four points. Firstly, the boundary between criminal and civil law: whether the other party has a performance defect or an illegal possession intention is the dividing line between economic disputes and fraud crimes, which needs to be judged comprehensively based on the performance ability, the flow of funds, and the circumstances of absconding. Secondly, jurisdiction: criminal cases are under the jurisdiction of the public security organ at the place of the criminal act or the place of the result, and the public security organ at the place of the unit's location can usually initiate a case. Thirdly, the standard of amount: according to the judicial interpretation of fraud crimes issued by the "Two High Courts", the value of fraudulent public and private property of more than 3,000 yuan but less than 10,000 yuan is considered a large amount. Localities can determine specific standards based on their local circumstances. Fourthly, the recovery of illicit gains and mitigation of losses: the connection between the freezing of illicit funds, the return of compensation, and the accompanying civil litigation directly affects the actual recovery rate, which can be combined with local circumstances to determine the specific measures.Creditor-debtor relations and enforcement case servicesCoordinate and advance in an integrated manner.

III. Professional analysis by Hengluo Lawyers

The core of criminal prosecution is "evidence organization + procedural advancement". In the criminal and civil lawsuit for intentional homicide represented by Attorney Liu Liqiang, the victims' families obtained compensation support while pursuing the defendant's criminal responsibility through a comprehensive review of the case file and evidence organization. This approach is also applicable to unit rights protection: as victims, units can file a civil lawsuit for material losses in criminal proceedings. Additionally, in the case of dissemination of obscene materials handled by Attorney Shang Jiangpeng, the lawyer met with the client, verified the case facts, and submitted a legal opinion on bail pending trial immediately after the client was detained by criminal custody. The case-handling authority ultimately adopted the lawyer's opinion and changed the coercive measures. In the case of operating a gambling house handled by Attorney Zhu Guiyin, the lawyer systematically argued the accomplice status and low social dangerousness through the "Application for Bail Pending Trial", and the client was granted bail after 30 days of criminal detention. These experiences show that the timing and quality of documents in criminal litigation directly determine the procedural direction. This case was handled by Beijing Henglu Law Firm.Liu LiqiangThe attorney (practice license number: 11101200910454358, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis is Article 110 (Reporting Cases, Filing Complaints, and Making Reports), Article 112 (Case Filing Review and Review), Article 113 (Supervision by the People's Procuratorate over Case Filing), and Article 101 (Attached Civil Actions) of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018); Article 266 (Fraud) of the Criminal Law of the People's Republic of China (the crime name has been retained through successive amendments of the Criminal Law, and the latest amendment was the Criminal Law Amendment (XII) implemented on March 1, 2024); and the provisions on the amount of conviction in the "Interpretation on Several Issues Concerning the Specific Application of Law in Handling Fraud Criminal Cases" issued by the Supreme People's Court and the Supreme People's Procuratorate on April 8, 2011. Practical suggestions: First, immediately freeze the other party's account clues and preserve contracts and transaction records after discovering being cheated; Second, have the legal representative or authorized personnel prepare case reporting materials, attaching the company's business license, power of attorney, and evidence list; Third, report the case to the public security organ at the crime scene or the unit's location and request a case acceptance receipt; Fourth, if the decision not to file a case is made, you can apply for a review or apply to the People's Procuratorate for supervision over case filing. For detailed procedures, please consultBeijing Henglu Law FirmCriminal defense team.

5. Henglu Law Firm's Advice

After the unit is cheated, there are two things to avoid the most: internal deliberations taking too long to make a decision, resulting in the loss of evidence; and trusting "debt collection companies" to recover the money by illegal means, which may lead to further risks. It is better to report the case as soon as possible, but the reporting materials should be detailed, with a focus on providing evidence of the illegal possession purpose (fund destination, absconding, and false performance). At the same time, prepare for civil remedies: property preservation, contract termination, and return of unjust enrichment can be carried out concurrently. If the case-handling organ makes a decision not to file a case, pay attention to applying for a review within the statutory time limit or requesting the procuratorial organ to supervise. For cross-border and mass-type fraud cases, it is recommended to engage a lawyer as soon as possible to coordinate criminal charges and asset recovery, and to seek assistance from relevant authorities when necessary.Special services and other case servicesDevelop a plan.

VI. Frequently Asked Questions

Q1: If the unit reports a fraud case to the police after being defrauded, will the public security organ definitely initiate a criminal case?

Not necessarily. The public security organ needs to establish a case on the premise that "there are criminal facts that require criminal responsibility to be investigated". If the case is deemed an economic dispute or there are no criminal facts after review, the public security organ may not establish a case and notify the complainant. According to Article 112 of the Criminal Procedure Law, the complainant may apply for a review if he/she disagrees with the decision. The key to increasing the probability of establishing a case is whether the complaint materials can prove that the other party has the purpose of illegal possession: fabricating facts, absconding after receiving the money, or using the funds for non-operational purposes, etc. Complaints with detailed materials and closed-loop evidence have a significantly higher probability of being established as a case.

Q2: What materials and evidence do I need to prepare when reporting a case to the unit?

The core materials include: a business license and the legal representative's identity certificate, a power of attorney for reporting a case, a report of the case (stating the time, process, and amount of losses), transaction documents such as contracts and orders, bank transfer receipts and corporate transaction records, communication records (emails, instant messaging, letters), information about the other party and clues to the identity of the person in charge, as well as internal approval and meeting records. The evidence should be organized around the sequence of "fabricating facts or concealing the truth—the unit falls into a mistaken understanding—disposing of property—causing losses". It is recommended to make a list of evidence and keep copies, and present the originals when reporting the case.

Q3: If I hire a lawyer to represent me in a criminal case, is there a fee? And how much is it approximately?

Lawyers usually charge fees based on stages or workload when handling criminal charges, including case reporting guidance, preparation of case reporting materials, accompanying clients to report cases, review and supervision of case filing, etc. The specific amount is negotiated between the law firm and the client and there is no unified standard. According to the "Measures for the Administration of Lawyer's Service Fees", the fees should be clearly specified in the contract. Some law firms may charge fees on a per-service basis for basic services such as case assessment and material guidance. It is recommended to clarify the scope of services, fees for each stage, and refund conditions before signing the contract. Comparing the cost-effectiveness of "self-reporting cases" and "lawyer representation", hiring a lawyer to handle major cases is usually more conducive to case filing and asset recovery.

Q4: How long does it usually take to get results after reporting a case?

According to the opinions of the Ministry of Public Security on reforming and improving the case acceptance and filing system, the public security organ shall review the case promptly after accepting it: the review period for filing a case shall not exceed 3 days; for clues of suspected crimes that need verification, the review period shall not exceed 7 days; for major, difficult and complex cases, the review period may be extended to 30 days with the approval of the head of the public security organ at or above the county level. After the case is filed, the investigation period generally shall not exceed two months, and the period may be extended according to law if the case is complex. Whether the loss can be recovered depends on the freezing and return of the illicit funds, and the timeframe is uncertain. It is recommended to keep in communication with the handling police officer and provide additional evidence in a timely manner.

Q5: If the public security organ refuses to file a case, what other options does the unit have?

Four approaches can be taken in turn: Firstly, in accordance with Article 112 of the Criminal Procedure Law, apply for a review to the public security organ that made the decision, and request an explanation of the reasons for not filing a case; Secondly, apply to the People's Procuratorate for case filing supervision. The procuratorate shall require the public security organ to explain the reasons. If it considers that the reasons for not filing a case are unfounded, it shall notify the public security organ to file a case; Thirdly, report the case again after providing new evidence, especially the flow of funds that can prove the purpose of illegal possession and the evidence of evading responsibility; Fourthly, prepare for civil litigation simultaneously, and recover the losses through contract litigation or unjust enrichment litigation. When multiple approaches are taken in parallel, it is recommended to entrust a lawyer to coordinate them to avoid procedural conflicts.

The above answer is based on the judicial practice in the Beijing area. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary 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 the current effective 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.