[Direct answer]The criminal charges of contract fraud should organize evidence around "falsifying facts, concealing the truth + illegal possession of funds + delivering goods based on the contract". The core four categories are: first, the subject and contract evidence, including the other party's qualifications, the contract text, and the record of the signing process; second, the performance and loss evidence, such as payment receipts, transfer records, and delivery records of the goods; third, the evidence of deception methods, such as impersonating authorized brands, forging qualification records, false promotional pages, and chat records and web page screenshots that falsely depict the other party's performance ability; fourth, the evidence of the funds' whereabouts, which is used to prove that the other party absconded, squandered, or used the funds for illegal activities after receiving the payment. The charges should be accompanied by a letter of accusation, identity and ownership certificates, and a list of evidence. According to Article 224 of the Criminal Law of the People's Republic of China, if a person fraudulently obtains the other party's property during the signing or performance of a contract with the intention of illegal possession, and the amount involved is relatively large, he/she shall be guilty of the crime of contract fraud. For more details, please refer to the relevant provisions of the Criminal Law of the People's Republic of China.Criminal defense and legal services for criminal case filingAndBeijing Henglue Law Firm.

1. Problem background and typical scenarios

Franchise scams, suppliers disappearing after delivery, and engineering intermediary fees going down the drain are the three most common scenarios of contract fraud complaints. The common dilemma faced by victims is that even though they feel they have been cheated, when they report the case to the police, they are told "this is an economic dispute, so go sue in court". The main reason is that the complaint materials only include contracts and transfer records, lacking evidence to prove that the other party "intended to defraud from the beginning". Typical cases include: the investment promoter pretending to be a well-known chain brand for investment promotion, fabricating qualifications and cooperation relationships; the seller disappearing after receiving the payment or transferring funds; cheating for trust by first performing a small-scale contract and then defrauding large-scale payments; and using forged property ownership certificates as collateral to obtain loans. Whether the evidence is organized properly directly determines whether the case can be registered for investigation.

II. Key points of contention

  • The boundary between civil fraud and criminal fraud lies in the "illegal purpose of possession". If the other party lacks the ability and willingness to perform the contract at the time of signing or during the performance, and flees and squanders the money after receiving it, it tends to be a criminal fraud. However, if the other party partially fulfills the contract despite exaggerating the situation, it is more likely to be a civil fraud. In this case, the victim can request to rescind the contract in accordance with Article 148 of the Civil Code of the People's Republic of China.
  • The standard for filing a case: It is not necessary to meet the conviction standard at the complaint stage, but it is necessary to prove the existence of clues to the crime. The more specific the evidence of the deception methods and the whereabouts of the funds is, the greater the possibility of filing a case.
  • Procedural choices in the intersection of civil and criminal law: If the court, after hearing an economic dispute case, concludes that it does not fall under economic disputes but involves suspected economic crimes, it may, in accordance with Article 11 of the "Regulations of the Supreme People's Court on Several Issues Concerning Suspected Economic Crimes in the Trials of Economic Dispute Cases", rule to dismiss the lawsuit and transfer the case to the public security organ; the parties may also actively report the case to the public security organ and apply to the procuratorate for filing a case for supervision.
  • The path of recovering illicit gains and mitigating losses: After a criminal case is filed, the funds are recovered through procedures such as seizure, freezing, and recovery of illicit gains. This approach is usually more effective than civil enforcement alone, but it requires evidence of the accusation to support the property clues. These two aspects can be combined together.Creditor-debtor relations and enforcement case servicesEvaluate the redemption plan.

III. Professional analysis by Henglue Lawyers

A number of contract fraud cases handled by Henglue Lawyers have shown that the key to successful prosecution is to substantiate the evidence of "deceptive means". In a franchise case, Li * searched the internet for franchise information of a well-known fast-food brand and contacted a catering company. The company falsely claimed to have a cooperation relationship with the well-known brand, displayed fake filing signs, substituted low-quality ingredients for imported high-end ones, and fabricated a list of franchisees. After signing the contract, Li * paid a total of 508,000 yuan in franchise fees, trademark usage fees, and technology transfer fees. However, the subsequent site selection, training, and promotional activities were severely inconsistent with the promises. After accepting the case, the lawyer immediately sorted out the entire process of signing and performance, and fixed the evidence of false advertising item by item on web pages and promotional materials, pointing out that the company's concealment of key information constituted fraud. The court reviewed the case and determined that there were indeed suspicions of economic crimes, ruling to dismiss the lawsuit and transfer the materials to the public security organ. At this time, the public security organ had already initiated investigations into complaints from multiple franchisees. Li *'s rights protection was upgraded from "individual recovery of funds" to "comprehensive investigation and centralized recovery of assets". In another defense case, Wang * was approved for arrest on suspicion of participating in contract fraud involving nearly 200,000 yuan. The lawyer submitted an application for review of the necessity of detention, and argued in detail based on his status as an accomplice, his low subjective malice, his voluntary surrender, his admission of guilt and punishment, his compensation and obtaining a pardon from the victim, and his provision of clues to assist in the investigation. Two weeks later, the procuratorate decided to change the coercive measures to bail pending trial. The two cases jointly demonstrate that whether it is prosecution or defense, victory lies in substantiating every claim with concrete evidence.

IV. Practical suggestions and legal basis

At the legal basis level: Article 224 of the Criminal Law of the People's Republic of China lists the typical circumstances of contract fraud, including signing contracts with fictitious entities or using others' names, using forged, altered, or invalidated bills or false property ownership certificates as guarantees, deceiving the other party into continuing to sign and perform the contract by pretending to have the ability to fulfill the contract but actually not being able to do so, and absconding after receiving the other party's payment, advance payment, or collateral. Article 110 of the Criminal Procedure Law of the People's Republic of China stipulates that any unit or individual who discovers criminal facts or suspects of a crime has the right and obligation to report or denounce the case to the public security organ, and victims have the right to report or file a complaint against crimes that infringe their property rights. Article 113 of the Criminal Procedure Law of the People's Republic of China stipulates that where the public security organ refuses to initiate an investigation into a case that should be investigated, the people's procuratorate has the right to require the public security organ to explain the reasons for the refusal, and victims may apply for supervision of the case filing based on this. At the practical advice level: Before filing a complaint, sort out the evidence list and file it according to five groups: subjects, contracts, payments, deception methods, and fund destinations; write the complaint clearly stating the clues to the suspects and the clues to the property, and attach an evidence catalogue; for decisions not to initiate an investigation, you can apply for a review or apply to the procuratorate for supervision of the case filing; for electronic data such as web pages and chat records, you should make screen recordings and notarizations to preserve them; if you are unsure about the order of civil and criminal proceedings, you can refer to the relevant provisions of the Criminal Procedure Law and the Code of Criminal Procedure.Business and contract dispute resolution services for enterprisesEvaluate them together.

5. Henglu Law Firm's Reminder

When filing a complaint for contract fraud, it's most important to avoid simply "handing over a contract and bank transfer records to the public security authorities". The complaint materials should present a complete evidence story: who the other party is, how they committed the fraud, why I believed them, and where the money went. Evidence of the fraudulent methods (such as fake qualifications, counterfeit authorizations, and false promotional pages) is key to distinguishing this from ordinary debt disputes, and it's essential to secure this evidence before the other party deletes posts or changes their story. Don't give up if the complaint is rejected. Administrative review and case filing supervision are both legal remedies. This case was handled by Beijing Henglu Law Firm.Zhu GuiyingAttorney (Practice Certificate No.: 11101202011246828, subject to the document issued by the judicial administrative organ) acts as the agent. If you encounter similar scams, it is recommended that you consult a professional lawyer as soon as possible with your contract, payment receipts, and communication records, and simultaneously evaluate the optimal order of criminal prosecution and civil remedies.

Q1: How to distinguish between contract fraud and economic contract disputes?

The key points are as follows: First, whether the other party has the actual ability to perform the contract at the time of signing. Companies with no real assets, companies with falsified qualifications, and companies signing contracts under others' names are prone to fraud. Second, whether there is a willingness to perform and actual performance. Companies that disappear after receiving the money, abscond, or transfer funds are prone to fraud. However, if there are some flaws but the company continues to perform part of the contract, it is more likely to lead to disputes. Third, the destination of the funds. If the funds are squandered, used for gambling, or used to repay personal debts, it is prone to fraud. If the funds are used for normal operations, it is more likely to lead to disputes. It should be noted that situations where exaggerated promotions are made but the goods are actually delivered are often civil frauds. According to Article 148 of the Civil Code of the People's Republic of China, the parties may request the rescission of the contract and demand the return of the funds. The evidentiary requirements for criminal charges are different. It is recommended that lawyers first evaluate and determine the nature of the case.

Q2: How should a criminal complaint be written, and what materials should be attached to it?

The complaint generally includes six parts: the basic information and contact details of the complainant and the defendant; a timeline of the fraudulent process (signing the contract, making payments, and the specific time points when the complainant realized they had been deceived); a detailed list of the defendant's fraudulent methods with corresponding evidence; the amount of losses and payment details; and clues about the defendant's main entities (full name of the company, unified social credit code, actual controllers, and operating address) and property clues (accounts, real estate, vehicles), which are helpful for seizing and freezing assets after the case is filed. The accompanying materials include the complainant's identity proof, contract text, payment receipts, invoices, promotional materials, chat records, audio and video recordings, and company registration files, which are bound according to the index. The more systematic the materials are, the smoother the case review process will be.

Q3: What should I do if the public security organ refuses to file a case?

There are three statutory remedies: First, request an "Notice of Refusal to File a Case" and, upon receipt, apply for a review to the public security organ that made the decision; Second, apply for a review to the superior public security organ; Third, in accordance with Article 113 of the Criminal Procedure Law of the People's Republic of China, apply to the people's procuratorate at the same level for case filing supervision. The procuratorate shall require the public security organ to explain the reasons for refusing to file a case. If the reasons are unfounded, the procuratorate shall notify the public security organ to file a case. In addition, we should reflect on the shortcomings of the complaint materials themselves, and supplement the evidence of deception methods and fund flows before reporting the case again. This is often more effective than simply going through the formalities.

Q4: After a criminal charge is filed, can the money that was defrauded be recovered?

There's a chance, but it depends on the destination of the funds and the timing of the investigation. After the criminal case is filed, the public security organ can legally inquire into and freeze the accounts involved in the case, recover the illegal proceeds and order the offender to make restitution, and handle the sealed-up and seized property together with the case. If the funds have not been transferred or squandered, the recovery rate will be higher, but the longer the delay, the greater the risk. Therefore, when filing a complaint, one should try to provide clues to assets such as accounts, real estate, and vehicles. If the recovery of criminal proceeds is insufficient to compensate for the losses, one can also file a civil compensation lawsuit against other responsible parties separately. It's better to take actions to preserve evidence and file a complaint as early as possible, as this is the most important factor affecting the recovery rate of funds.

Q5: Can a contract dispute that has already been sued in court be converted into a criminal charge?

Yes. The two approaches can be pursued concurrently without conflict: First, in civil litigation, the court may point out that the case involves suspected economic crimes. According to Article 11 of the "Interpretation of the Supreme People's Court on Several Issues Concerning Suspected Economic Crimes in the Trials of Economic Disputes", if the court finds that there are indeed suspected economic crimes after review, it shall rule to dismiss the suit and transfer the relevant materials to the public security organ or the procuratorial organ; Second, directly file a criminal complaint with the public security organ at the same time as the litigation. When making a choice, it is advisable to first have a lawyer evaluate the strength of the evidence: if the evidence is sufficient and the whereabouts of the funds are clear, the recovery of the illegal proceeds through criminal litigation will be more effective; if the evidence is insufficient, it is possible to first strengthen the evidence through the evidentiary and investigation procedures of civil litigation, and then decide whether to file a criminal complaint.

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