LEGAL REGULATION OF EQUITY CONSTRUCTION: SHORTCOMINGS DETERMINING SOME TYPES OF ECONOMIC CRIMES

There are various types of unlawful, including criminal, behavior in the sphere of construction, but the lawmakers have reduced them all to << defrauding shareholders >>. The growth in the number of such offences is directly connected with the shortcomings in the system of subcontractor bidding, the legislation on self- regulating organizations and the general economic climate for developers. The authors conclude that << defrauded shareholders >> are the result of failed financial pyramid schemes devised by developers to compensate for insufficient funds and expensive bank loans. The lawmakers should take into account not only the position of shareholders, but also the position of developers who need a cheap loan, while amendments to legislation set various limits to means available to them. Calculations show that a bank loan with a 5 % interest automatically eliminates most problems, but this solution is outside the industry's control. At present, a developer can only obtain a loan for project funding if the full project documentation is ready, the construction permit has been obtained and at least 30 % of the total amount has already been invested in the site. Most developers cannot meet these requirements. To summarize, there should be adequate punishment for offenders in the sphere of real estate ( imposition of fines proportionate to the public danger of the action). At the same time, administrative liability is incurred if the actions of a person do not constitute a criminal offense. Administrative liability is less repressive than the criminal one, which is evident from the comparative analysis of administrative and criminal punishments and the type of deprivations and encumbrances that they entail. The future of equity construction depends not only on criminal or administrative legislation, but on the economic climate in Russia and the complex financial and legal measures aimed at protecting defrauded shareholders.