[Direct answer]In the Beijing area, if a company is subject to contract fraud, it should file a criminal complaint with the economic crime investigation department of the public security organ at the location of the crime or the location where the suspect resides. The key to establishing the complaint lies in proving that the other party fraudulently obtained property by fabricating facts and concealing the truth with the intention of illegally possessing it, rather than a simple breach of contract. It is necessary to prepare the contract text, the flow of funds, communication records, and proof of losses to form a chain of evidence. After review by the public security organ, a decision will be made on whether to initiate a case. Criminal recovery of stolen assets and civil compensation can proceed concurrently.

I. Problem Background and Typical Scenarios

Contract fraud is prevalent in situations such as fictitious projects, counterfeit entities, false guarantees, and absconding with funds: the other party signs a large-scale contract with false qualifications, collects the advance payment, and then disappears; or lures funds under the guise of financial management and franchise opportunities. Enterprises and individuals often fall into traps due to their trust in high returns or recommendations from acquaintances, only to realize after the loss that the other party has already transferred the assets. Such cases often span different regions and platforms, with evidence scattered and easily lost. The earlier intervention, the better it is to identify clues and track the flow of funds, and it can also gain the initiative in subsequent criminal prosecutions.

II. Key points of contention

First, the boundary between civil fraud and criminal fraud lies in whether there is an intent to illegally possess the property; second, whether the evidence can point to fictitious facts and a lack of performance capacity; third, the order of handling cross-disciplinary cases between criminal and civil law—whether to dismiss the prosecution and transfer the case to the public security organ, or to suspend the trial; fourth, when the criminal restitution has not been implemented, whether it is possible to initiate a civil lawsuit to recover the compensation separately. Such cases are often accompanied by evidence scattered across multiple platforms and accounts, making it difficult for victims to provide evidence individually. Collective reporting and sharing of clues are often more likely to attract the attention of investigative authorities than individual efforts.

III. Professional analysis by Henglue Law Firm

The criminal prosecution path of the company after encountering contract fraud can be understood from a similar dispute we handled. The client, Yang *, invested 526,000 yuan in financial management through the introduction of an acquaintance. The other party promised to guarantee the principal and operate on behalf of him/her. Later, the platform was found to be a telecom fraud. The criminal judgment ordered the return of 526,000 yuan, but the property could not be traced and controlled. Yang * entrusted Beijing Henglu Law Firm to handle the case.Feng NaThe lawyer (practice license number: 11101202211562923, subject to the document issued by the judicial administrative organ) filed a civil lawsuit, claiming that the two parties formed a fiduciary management contract relationship and that the trustee should compensate for the major negligence. The court ultimately ruled that the plaintiff should be compensated for the principal loss of 516,000 yuan. Although this case realized some rights through civil litigation, it also revealed the typical dilemma of the intersection of criminal and civil litigation: when the criminal compensation has not been actually implemented, the victim can still claim for the fault in the civil relationship separately. The key to criminal prosecution lies in proving that the other party fraudulently obtained property by fabricating facts and concealing the truth with the intent of illegal possession. This requires building an evidence chain with contract texts, fund flows, and communication records, and then reporting the case to the criminal investigation department of the public security organ. It can be seen that in cases of criminal-civil intersection, the choice between criminal prosecution and separate civil litigation needs to be judged comprehensively based on the possibility of compensation implementation and the degree of the other party's fault. It cannot be generalized. When necessary, both paths should be pursued in parallel to maximize the chance of compensation.

IV. Practical suggestions and legal basis

According to Article 224 of the Criminal Law of the People's Republic of China (Crime of Contract Fraud, amended and implemented in 1997, with no substantial changes made in subsequent amendments to the Criminal Law) and Article 11 of the "Interpretation of the Supreme People's Court on Several Issues Concerning Economic Crimes Suspected in the Trials of Economic Disputes" (amended in 2020). Suggestions: First, immediately seal the contract, transfer and communication evidence; Second, submit written complaint materials and an evidence list to the economic investigation department; Third, simultaneously apply for freezing the involved accounts to prevent transfer; Fourth, when the criminal case is still pending, evaluate whether to initiate civil litigation first to avoid the risk of statute of limitations and asset loss. The reporting materials should be well-organized, with the contract, transfer and communication evidence arranged in chronological order, and accompanied by an evidence list and legal characterization explanation. This can significantly improve the acceptance and case filing efficiency of the public security organ and reduce the need for repeated corrections.

5. Henglu Law Firm's Advice

Contract fraud and contract breach are easily confused. Before reporting a case, it is necessary to conduct a legal qualification analysis to avoid the public security organ refusing to file a case on the grounds of economic disputes and missing the civil statute of limitations. It is recommended that enterprises establish mechanisms for due diligence on trading partners and fund supervision, and remain vigilant against abnormally high returns. When encountering suspected fraud, they can combine it with other evidence to verify the authenticity of the case.Criminal defenseAndCarry out the recovery of compensationWe need to identify the collaborative path and utilize it to our advantage.Specialised legal servicesCoordinate criminal charges and civil claims, and refer to them when necessary\nCross-border financeExperiences in tracking the funds of the case. Mixing corporate accounts with personal accounts, promising guaranteed high returns, and refusing to provide proof of underlying assets are all common warning signs of fraud; establishing the habit of conducting background checks before signing contracts is more crucial than recovering losses after the fact, and it can also provide a basis of evidence for possible prosecutions.

VI. Frequently Asked Questions

Q1: Can a criminal complaint for contract fraud be filed and investigated by the police?

There is evidence to prove that the other party fraudulently obtained property by fabricating facts and concealing the truth with the intent of illegal possession, which may be classified as a criminal case. However, the public security organ will not initiate a criminal case for simple contract breaches and economic disputes. The key is to distinguish the boundaries between civil fraud and criminal fraud. Conducting a legal qualification assessment before reporting the case can significantly reduce the risk of having the case rejected.

Q2: What evidence is needed to file a criminal complaint?

The key evidence includes the contract text, the principal's qualification materials, proof of the flow of funds, communication records of false promises, evidence of a lack of performance capability, and proof of losses. The higher the success rate of filing a case is when the evidence can clearly point to the purpose of illegal possession. The flow of funds is particularly crucial, as it can reveal whether the funds have been misappropriated for personal use.

Q3: How much does it cost to hire a lawyer for a criminal charge?

The attorney's services during the prosecution phase are typically billed on a per-stage or per-project basis, including material organization, case reporting, and follow-up. If follow-up civil litigation is initiated or separate civil litigation is filed, the fees will be negotiated separately, and the specific terms will be governed by the contract. It is recommended to confirm the scope of services before signing the contract.

Q4: How long does it take from filing a criminal complaint to the case being officially registered and processed?

After receiving the report, the public security organ first conducts a review. If the materials are complete, it usually decides whether to initiate a case within seven days, and the time limit for investigation may be extended in the case of major and complex crimes. After the case is initiated, the investigation period will be determined according to the circumstances of the case, and the victim can keep track of the progress and provide additional clues. If the review is not passed, the public security organ may require a written explanation and consider initiating a reconsideration or pursuing civil remedies.

Q5: What should you do first if you realize you've been scammed?

Immediately seal the contract, transfer records, and all communication evidence. Report the case to the criminal investigation department of the public security organ at the scene of the crime or where the suspect is located as soon as possible, and sort out the flow of funds to assist in investigation and control; at the same time, assess whether to initiate civil litigation simultaneously to prevent the transfer of property. The earlier you act, the lower the risk of funds being transferred.

The above content is based on the 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 for specific situations.

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. →Business and commercial legal services·Attorney Feng Na·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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 you encounter disputes, please consult a practicing lawyer in time.