20 accounts of Nhat Nam Company frozen by police have no money

On the afternoon of October 2, at a press conference of the Ministry of Public Security, Major General Nguyen Thanh Tung, Deputy Director of Hanoi City Police, informed about the case that occurred at Nhat Nam Real Estate Investment and Trading Joint Stock Company (Nhat Nam Company).

According to the Deputy Director of Hanoi City Police, the investigation determined that from 2020 to 2022, Nhat Nam Company collected a total of about 8,900 billion VND from about 20,000 individuals through 45,525 business contracts, including many individuals with multiple contracts.

This company used to pay principal and interest to individuals with an amount of more than 4,000 billion VND, by taking money from later people to pay interest to earlier people.

Operating costs are 520 billion VND, the company paid commissions to individuals who introduced capital mobilization of more than 2,000 billion VND, paid individual Vu Thi Thuy (Chairman of the Board of Directors and General Director of Nhat Nam Real Estate Company) more than 600 billion VND, the remaining amount of nearly 1,000 billion VND is currently unclear where the spending went.

"The police have checked and frozen about 20 accounts, but these 20 accounts have no money. The authorities are actively seizing houses and land related to this company to ensure the rights of the victims when the case is tried," Major General Nguyen Thanh Tung informed.

Initially, the police confirmed that there were 111 victims, the amount of money embezzled was 138 billion VND. Hanoi City Police are expanding to arrest accomplices in the case and actively seizing assets, searching for and tracking down other real estate to ensure the rights of the victims.

Previously, at the regular Government press conference on September 30, Lieutenant General To An Xo, Spokesperson of the Ministry of Public Security, said that at the investigation agency, Vu Thi Thuy (born in 1983, Chairwoman of the Board of Directors and General Director of Nhat Nam Company) stated that the company had not yet made a profit and that the company did not have any real estate projects in Hoa Binh and Binh Thuan provinces as advertised.

Regarding the method of providing false advertising information by Vu Thi Thuy and Nhat Nam Company, in 2019, Vu Thi Thuy established Nhat Nam Company but Thuy did not contribute capital as a shareholder. Thuy's purpose in establishing the company was to mobilize capital from individuals.

Nhat Nam Company's financial statements from 2019 to 2021 were all losses. Vu Thi Thuy organized seminars that attracted a large number of participants such as: organizing 2 large seminars on March 13, 2022 and July 2, 2022 at the National Convention Center, attracting 5,561 attendees.

In addition, Thuy opened 32 representative offices in Hanoi, Ho Chi Minh City and other provinces and cities nationwide to organize promotions and mobilize capital. At seminars, Thuy used a number of prestigious individuals in society who had worked in the legal industry to introduce the company's reputable business, full payment of principal and interest, commitment to not losing capital... so that participants were ready to invest.

Through the above incident, the Ministry of Public Security recommends that investors be extremely vigilant before participating in capital mobilization projects.