The Ministry of Public Security initiated a case of fraud and property appropriation at Nhat Nam Company.

Regarding the case of the General Director of Nhat Nam Real Estate Company being accused of fraud, how many reports have been sent to the authorities so far? According to initial information, Hanoi City Police determined that Vu Thi Thuy had provided false advertising information about the projects. So, are these projects real or not? How did the false information take place?

Responding to the press at the regular Government press conference on the afternoon of September 30, Lieutenant General To An Xo - Spokesperson of the Ministry of Public Security said: Based on the documents and evidence collected from the investigation, on August 30, 2023, the Hanoi City Police Investigation Agency issued a Decision to prosecute the case of fraud and appropriation of property occurring at Nhat Nam Real Estate Investment and Trading Joint Stock Company (referred to as Nhat Nam Company), as prescribed in Article 174 of the Penal Code.

The investigation determined that from 2020 to 2022, Nhat Nam Company collected a total amount of more than VND 8,941 billion from about 20,000 individuals, through 45,525 business cooperation contracts (one individual signed many contracts). Commissions paid to individuals for introducing capital mobilization were about more than VND 2,272 billion. Thuy used about VND 635 billion for personal use... Currently, the investigation agency has clarified and recorded the statements of 111 victims, initially determining the amount of money appropriated to be more than VND 138 billion.

Vu Thi Thuy herself admitted at the investigation agency that the investment and business activities of Nhat Nam Company have not yet generated any profit. Nhat Nam Company does not have any projects or real estate in Hoa Binh and Binh Thuan provinces as advertised to individuals.

Also according to Lieutenant General To An Xo, regarding the method of providing false advertising information of 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; the purpose of establishing Thuy's company was to mobilize capital from individuals. The financial statements of Nhat Nam Company from 2019 to 2021 were all losses.

Vu Thi Thuy has 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 participants. In addition, Thuy opened 32 representative offices in Hanoi, Ho Chi Minh City and provinces across the country to organize promotions and raise capital.

At the 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, and commitment to not losing capital if investing in the company.

In addition, Thuy posted information and promotional videos about Nhat Nam Company and its capital mobilization activities on social networking sites (such as Facebook, YouTube, Zalo, etc.). At the same time, Nhat Nam Company attracted and trained customers who had contributed capital to become sales staff and paid commissions of 15-20% of the contract value so that individuals could continue to attract others to contribute capital to the company.

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