Core Viewpoint - The case of Su Mouming and others highlights that the registration of private fund managers and the filing of private funds do not affect the recognition of the "illegality" of illegal fundraising activities [4][10]. Case Summary - Su Mouming, the actual controller of Shenzhen Hong Mou Wealth Management Co., Ltd. and Shenzhen Hong Mou Fund Management Co., Ltd., was involved in illegal fundraising activities from July 2016 to July 2018, raising a total of RMB 5.999 billion through five private equity fund products [2][7]. - The funds were misappropriated for various purposes, including paying back investors, funding real estate projects, and covering operational costs, leading to a loss of over RMB 4.41 billion for investors [2][7]. Judgment Results - The Shenzhen police initiated an investigation in February 2019, leading to the prosecution of Su Mouming and his associates for illegal fundraising [3][8]. - In May and September 2021, the Shenzhen court sentenced Su Mouming to five years in prison and a fine of RMB 300,000, while his associates received three years in prison and fines of RMB 100,000 each [3][9]. Industry Warnings - The case emphasizes that private fund managers' registration and fund filing do not legitimize illegal fundraising, as private funds must adhere to specific regulations that prohibit public fundraising without proper authorization [4][10]. - Various methods of illegal fundraising under the guise of private funds include misleading marketing practices and allowing unqualified investors to participate, which violate the fundamental nature of private funds [5][10]. - The distinction between illegal fundraising and fraud hinges on the intent to unlawfully possess funds; in this case, the funds were primarily used for legitimate projects, thus not constituting fraud [6][11].