Chairman of Tan Hoang Minh Group prosecuted for manipulating bonds to appropriate 8,600 billion

On November 22, Mr. Do Anh Dung - Chairman of Tan Hoang Minh Group - was prosecuted by the Supreme People's Procuracy for fraud and property appropriation.

With the same crime, the Procuracy prosecuted Do Hoang Viet (Deputy General Director of Tan Hoang Minh), Nguyen Manh Hung (former Chairman of the Board of Directors of Ngoi Sao Viet Real Estate Investment Company Limited), Tran Hong Son (Chairman of the Board of Directors of Soleil Hotel Investment and Services Joint Stock Company), Nguyen Khoa Duc (Chairman of the Board of Directors and General Director of Winter Palace Joint Stock Company), Le Van Thinh (Deputy General Director of Tan Hoang Minh) and Phung The Tinh (former Director of Finance and Accounting of Tan Hoang Minh)...

Tan Hoang Minh Chairman directed fraudulent bond issuance

According to the indictment issued by the Procuracy, Tan Hoang Minh Hotel Service Trading Company Limited (Tan Hoang Minh Group) with a charter capital of 10,000 billion VND was founded by Mr. Dung in 1993.

To operate under the group model, Mr. Dung established or bought back shares and capital contributions of 45 companies and then appointed a person to be the legal representative. These companies all operated under Mr. Dung's direction.

In 2021, due to large debts, new projects that could not be implemented and the impact of the COVID-19 pandemic, Tan Hoang Minh Group encountered many financial difficulties, with a debt of nearly 20,000 billion VND.

Faced with many debts due and overdue, he directed his son Do Hoang Viet to research plans and ways to raise capital for the company.

And the plan to use fraudulent subsidiaries to issue bonds to raise money for Tan Hoang Minh was formed. The chosen policy was to issue individual corporate bonds.

Mr. Do Anh Dung agreed with Mr. Viet to use the legal entity of three companies to fabricate business activities with fake contracts such as investment cooperation, deposits, and stock purchases to issue individual bond packages to raise capital.

According to the plan, Tan Hoang Minh colluded with a group at Nam Viet Auditing Company (Northern branch) and Hanoi CPA Company to audit, legalize data, and "beautify" the 2020-2021 financial statements to legalize companies eligible to issue bonds.

Right from the planning meeting, the group agreed not to use Tan Hoang Minh legal entity to issue bonds because this unit has many subsidiaries, so "financial data is complicated".

Mr. Dung used the group's subsidiaries to issue individual bonds with collateral to create trust and attract many bond buyers.

Mr. Dung also directed the signing of "fake" contracts to transfer bonds and run "fake" cash flows showing payments from Tan Hoang Minh Company to the issuing company.

This is to create "virtual" value for bond packages and bondholders for Tan Hoang Minh to sell bonds widely to the people.

The prosecution agency accused Tan Hoang Minh of "mobilizing and appropriating money from secondary investors", mainly ordinary people - non-professional investors.

With the above tricks, Tan Hoang Minh has mobilized nearly 14,000 billion VND through the issuance and sale of nine illegal bond packages.

Seizing more than 8,000 billion VND

Investigation results determined that more than 6,600 customers signed bond investment contracts and transfer contracts and had 8,600 billion VND appropriated by Tan Hoang Minh.

Mr. Dung was identified as the mastermind responsible for the amount of money embezzled.

During the investigation so far, Mr. Dung has returned and the Ministry of Public Security has recovered a total of more than 8,600 billion VND, remedying all the consequences of the case.

In the investigation conclusion issued at the end of September, Mr. Dung was assessed to have honestly confessed, admitted his crime, submitted a request and actively cooperated to remedy the consequences of the case.

Mr. Dung was also recognized for mitigating circumstances such as the process of managing Tan Hoang Minh's operations with many achievements and contributions to society; participating in many social charity activities; receiving many certificates of merit from the Government, Prime Minister, units, localities, and sectors...