Shanghai Second Landlord Extorted of 200,000 Yuan, Afraid to Report to Police; Lawyer Explains Determination of Extortion and Paths for Victims to Protect Their Rights
Lead
Recently, several second landlords in Shanghai told the media that they had been repeatedly blackmailed by the same group, which threatened to report group renting, fire safety violations, tax evasion, and other issues, with the cumulative amount extorted exceeding 200,000 yuan. Surprisingly, most of these victims chose to suffer in silence and did not even dare to report the matter to the public security authorities. The reason is not hard to understand: their own subletting operations often involved illegal partitions, failure to file or register, and other problems, and they feared that reporting to the police would be like walking into a trap.
From a lawyer's perspective, this incident touches on two key legal issues: first, whether the constitutive elements of the crime of extortion require the victim to be "clean" themselves; second, when the victim is suspected of administrative violations or even unlawful conduct, how to exercise the right to report the matter and claim civil compensation. These two issues are precisely the overlooked breakthrough points in many similar cases.
I. The establishment of the crime of extortion does not presuppose a perfect and flawless victim.
According to Article 274 of the Criminal Law of the People's Republic of China, whoever extorts public or private property by blackmail, if the amount is relatively large or the extortion is committed multiple times, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention, or public surveillance, and shall also or only be fined; if the amount is huge or there are other serious circumstances, the offender shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years, and shall also be fined.
In judicial practice, the core of the crime of extortion is that the perpetrator, for the purpose of illegal possession, threatens or coerces the victim, forcing the victim to deliver property. Whether the content of the “threat” is lawful and whether the victim is at fault do not affect the establishment of the crime. In other words, even if the sublessor has indeed engaged in illegal group renting, failed to file in accordance with law, or committed other such acts, the perpetrator cannot use these as leverage to demand property.
The Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues concerning the Application of Law in Handling Criminal Cases of Extortion clarifies that where the value of extorted public or private property is 2,000 to 5,000 yuan or more, 30,000 to 100,000 yuan or more, or 300,000 to 500,000 yuan or more, it shall be respectively determined as a "relatively large amount," a "huge amount," or an "especially huge amount." In this case, the cumulative amount exceeds 200,000 yuan. If verified, it is already close to or reaches the "huge amount" standard, and the sentencing range may rise to more than three years but not more than ten years.
In legal practice, many victims mistakenly believe that they are in the wrong because they violated the rules first, and therefore give up reporting to the police. This cognitive bias is precisely exploited by perpetrators. In fact, administrative violation and criminal victimization are two independent legal assessments and cannot offset each other.
II. The Sublessor's Violation and Victimization Are Two Legal Dimensions.
A second landlord’s subletting may involve multiple types of administrative violations: failure to file the lease contract for record, unauthorized alteration of the housing structure to create partitioned group rentals, fire protection facilities failing to meet standards, and failure to declare and pay taxes in accordance with law, among others. These acts may be subject to administrative penalties. For example, the Measures for the Administration of Commodity Housing Leasing provide that violations may result in a fine of not less than RMB 5,000 and not more than RMB 30,000; the Fire Protection Law also contains corresponding penalty provisions for occupying, blocking, or sealing off evacuation routes, among other acts.
However, administrative punishment and the existence of a criminal victim are not in conflict. When public security organs accept a report of extortion, they shall examine the facts of the extortion and may not refuse to file a case on the ground that the victim themselves had committed a violation. According to the Provisions on the Procedures for Handling Criminal Cases by Public Security Organs, public security organs shall promptly examine reports, complaints, and tip-offs, and shall file a case for investigation if they believe there are criminal facts requiring criminal responsibility.
Of course, the victim’s violations may be separately investigated and handled, but these are two independent law enforcement proceedings. Lawyers suggest that, when reporting the case, the sublandlord may explain their business operations to the public security authorities and submit evidence of the extortion, seeking to have the criminal enforcement and administrative rectification handled separately. For violations that do exist, voluntarily rectifying them and completing the relevant formalities can also reduce subsequent risks to a certain extent.
III. How to Secure Evidence and Effectively Report to the Police After Being Extorted
The greatest difficulty in extortion cases lies in securing evidence. Perpetrators often use oral threats, telephone calls, WeChat voice messages, and other means to coerce victims, leaving no written traces. Victims should preserve the following materials as much as possible:
First, original records of the threats. This includes WeChat chat records, text messages, call recordings, emails, etc. Be sure to preserve the original media, not just screenshots forwarded on. Second, transfer evidence. Bank statements, WeChat Pay and Alipay transfer records should be kept complete. If remarks contain words such as loan or compensation, this can instead prove the illegality of the other party’s demand for money. Third, witness testimony. Other victimized sublandlords, intermediary personnel, and property management personnel can all serve as witnesses. Fourth, identity information of the perpetrator. This includes name, phone number, WeChat ID, license plate number, etc., to help the public security organ identify the suspect.
When reporting a case, it is advisable to submit the Report Materials in writing, specifying the time, place, perpetrator, content of the threats, and amount transferred, and to attach a list of evidence. If the public security organ refuses to file the case, you may, pursuant to Article 110 of the Criminal Procedure Law, apply for reconsideration, or apply to the people's procuratorate at the same level for supervision over case filing.
When representing such cases, lawyers typically assist victims in organizing the chain of evidence, assessing whether the threshold for criminal case filing is met, and, where necessary, concurrently initiating civil proceedings to seek restitution of unjust enrichment or compensation for losses.
IV. Civil Remedies for Victims and Recommendations for Compliance Rectification
In addition to filing a criminal report, the victim may also recover the extorted property through civil litigation. Under Article 153 of the Civil Code, a civil juristic act that violates the mandatory provisions of laws or administrative regulations is void; a civil juristic act that is contrary to public order and good morals is void. The act of extortion is itself illegal, and the property obtained by the perpetrator lacks a lawful basis, constituting unjust enrichment. Under Article 985 of the Civil Code, the victim has the right to request its return.
If a person, under the pretext of reporting, forces a sublessor to sign a so-called compensation agreement or hush-money agreement, such agreements may, because the expression of intent is not genuine and the content is unlawful, be challenged for rescission or declared invalid pursuant to Articles 148 and 153 of the Civil Code.
For the group of sublandlords, the more fundamental lesson lies in compliant operations. Subleasing a property should obtain the lessor’s written consent, and lease filing should be completed in accordance with the law; the property structure must not be altered without authorization, and overcrowded group renting must not be carried out. Compliant operations can not only reduce the risk of administrative penalties, but also provide a stronger position for defending one’s rights when facing extortion.
Lawyers at Guangdong Zhiming Law Firm remind that if you encounter extortion, do not give up reporting it to the police merely because you yourself have flaws. Criminal enforcement and administrative rectification can proceed in parallel. Only by promptly consulting a professional lawyer, preserving evidence, assessing risks, and formulating a rights-protection strategy can you avoid the vicious cycle in which the more afraid you are, the more you are manipulated.
