CRIMINAL LAW COMBATING OF CREATING FINANCIAL PYRAMIDS IN UKRAINE: CURRENT STATUS AND FUTURE IMPROVEMENTS
Journal Title: Юридичний науковий електронний журнал - Year 2017, Vol 2, Issue
Abstract
The article discusses issues associated with the criminal law assessment of actions by the organizers of financial pyramids and possible solutions to resolving them. Based on the results of the analysis of legislation of Ukraine on consumer protection a conclusion is made that failure to provide effective protection of consumers of financial services from activities of financial pyramids using the provisions of this law. It is also established that current criminal law is not able to fulfill one of its main objectives declared in part 1, Article 1 of the Criminal Code of Ukraine – to protect human and civil rights (specifically consumers of financial services) from such kind of socially dangerous behavior as organization of financial pyramids. The ratio between organization of financial pyramid and fraud is revealed. The position that there are no sufficient reasons to equate the creation of financial pyramid with fraud is argued. In particular, it is stated that if a person is aware of the fact of fraudulent actions committed against her, but despite this and hoping to obtain property benefits is involved in a particular transaction (such as by taking a risk and hoping to leave the game in time, has invested money in a financial pyramid) then the crime «fraud» is missing. In such case, defect of expression as typical for this crime against property is absent. Given the need to prove fraud or breach of trust to charge criminal law prohibitions as to fraud an opportunity available today there is no (or at least seriously complicated), and this is caused by the need to criminalize such act as organizing a financial pyramid is mentioned. However, the organization of financial pyramid should be stated (in the case of criminalization of this act – to qualify under the relevant provision of the Criminal Code of Ukraine) regardless of whether the investors are aware of the possibility of losing deposits made by them. However, if it is found that while engaging the respective contributions by the organizers of the pyramid there was still fraud (for example, they promised investors to invest money in production, without actually having such intention), the actions of the perpetrators should be additionally qualified under Article 190 of the Criminal Code of Ukraine. Draft laws, the adoption of which was intended to prevent the functioning of financial pyramids in Ukraine, are analyzed. It is shown how the issue of registration of criminal law prohibition on organization of financial pyramids was resolved by the authors of the relevant legislative initiatives. It is proved that the creation of the financial pyramid has to be regarded not as an encroachment on the property, but as an economic crime. Foreign experience of the researched subject is revealed. Possible ways and difficulties of constructing appropriate criminal law ban are discussed. The position that the Criminal Code of Ukraine requires not the casuistically ban on creation of the financial pyramid and the general provision on liability for unlawful provision financial services.
Authors and Affiliations
Р. О. Мовчан, О. О. Дудоров, В. Б. Дацюк
Keywords
Related Articles
- EP ID EP476676
- DOI -
- Views 64
- Downloads 0
THE ROLE OF THE DECREES OF THE PRESIDENT OF UKRAINE IN THE LEGAL REGULATION OF THE REFORM OF THE PROSECUTOR’S OFFICE OF UKRAINE
The article, based on the analysis of the norms of the current legislation of Ukraine, defined the role of decrees of the President of Ukraine in the legal regulation of the reform of the prosecutor’s offices of Ukraine....
LEGAL GARRANTEES OF REALISATION OF THE STANDARDS OF CRIMINAL PROCEDURE LAW
The article is devoted to coverage one of the actual problems of science of criminal proceedings on legal guarantees for the realization of the standard of criminal procedural law. The topic is actual due to the fact tha...
COUNTERING THE PROLIFERATION OF SMUGGLING IN THE BORDER AREAS OF UKRAINE
The article considers theoretical issues of determining the content of the smuggling activities. Deals with the topical issues of the Commission of smuggling, the preconditions of its distribution in the border areas. Th...
CRIMINAL LEGAL NATURE OF COMPASSIONATE RELEASE
The article highlights the issue of the criminal law nature of compassionate release, the analysis of criminal and criminal – executive legislation of Ukraine and other European countries, which regulates the procedure f...
PECULIARITIES OF IDENTIFICATION HUMAN’S ODOR TRACEC DURING THE INVESTIGATIVE INSPECTION
The article is devoted to the formulation of one of the most pressing problems arising in the investigation of criminal offenses, namely early detection and removal of traces of human olfactory during such investigative...