Legal basis: Article 224 of the Criminal Law of People's Republic of China (PRC) commits one of the following acts. Whoever, for the purpose of illegal possession, defrauds the other party of property in the process of signing and performing a contract, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also or only be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined or confiscated:
(1) Signing a contract in the name of a fictitious unit or others;
(2) Mortgaging with forged, altered or invalid bills or other false property rights certificates;
(3) Without actual performance ability, trick the other party into continuing to sign and perform the contract by performing the small contract first or partially.
(4) After receiving the payment for goods, advance payment or secured property paid by the other party;
(5) defrauding the other party's property by other means.
In the name of business activities such as selling goods and providing services, organizations and leaders require participants to obtain membership by paying fees or purchasing goods and services, and form a hierarchy in a certain order, directly or indirectly based on the number of people who have developed, luring or coercing participants to continue to develop pyramid schemes attended by others, defrauding property and disrupting economic and social order, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.