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) Fictitious units or signing contracts under the name of others; (2) Mortgaging with forged, altered or invalid bills or other false property rights certificates; (three) to perform a small contract or part of the contract first, to deceive the other party to continue to sign and perform the contract, and to have no actual performance ability; (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. Article 224-1 Any organization or leader who, in the name of business activities such as selling goods and providing services, requires participants to obtain membership qualification by paying fees or purchasing goods and services, forms a hierarchy in a certain order, directly or indirectly lures or coerces participants to continue to develop pyramid schemes in which others participate, defrauds property and disrupts economic and social order, and is also fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.