📢 Supreme Court Upholds Criminal Liability for Administrators Involved in Unauthorized Fundraising ⚖️💰

he First Chamber of the Supreme Court of Justice of the Nation (SCJN) ruled in Direct Amparo Review 4637/2024 that the criminal liability of administrators of companies operating banking and credit services without legal authorization is constitutional.

This ruling reinforces legal certainty in the financial sector, establishing that executives of companies that raise funds without proper authorization may face prison sentences without parole or penitentiary benefits.

📌 What is the case about?

📍 A company was raising client funds for alleged investments without obtaining legal authorization.
📍 The administrator was sentenced to five years in prison for unauthorized fundraising, without access to parole or other penitentiary benefits.
📍 The sentence was upheld on appeal.

⚖️ Defense Arguments vs. SCJN Ruling

🔴 Defense of the convicted administrator:
📌 Argued that Article 111 of the Credit Institutions Law is unconstitutional due to a lack of clear definitions of punishable conduct.
📌 Claimed that Article 90 of the Federal Penal Code unfairly restricts personal liberty by denying parole for sentences exceeding four years.

🟢 SCJN Ruling:
✅ The Supreme Court dismissed both arguments, stating that:
✔️ Article 111 of the Credit Institutions Law provides legal certainty by clearly outlining penalties for administrators operating without authorization.
✔️ Article 90 of the Federal Penal Code is a valid and necessary measure, ensuring effective punishment for serious crimes while balancing reintegration principles.
✔️ Unauthorized fundraising is a serious offense that undermines financial order and harms clients' rights, thus requiring strict sanctions.

📢 Impact of the SCJN Ruling

🔹 Stronger oversight on company administrators and financial executives.
🔹 Enhanced banking and credit regulation to prevent fraudulent activities.
🔹 Prevention of impunity in financial crimes that affect public trust in the financial system.

📌 With this decision, the SCJN confirms that unauthorized fundraising is a serious offense that must be met with firm penalties, without access to early release or sentence reductions.

📚 Official Sources

📌 Read the full SCJN ruling: 🔗 SCJN - Rulings
📌 Credit Institutions Law: 🔗 Consult here
📌 Federal Penal Code: 🔗 Full text

📢 Conclusion

📌 The SCJN upholds criminal penalties for administrators operating unauthorized financial services.
📌 This ruling strengthens legal certainty and protects investors from financial fraud.

🚨 What are your thoughts on this SCJN decision? Leave us a comment.