How did Tam Loc Phat Company defraud investors of more than 5,000 billion VND?

The Hanoi People's Procuracy has just approved the decisions to prosecute and arrest Nguyen Thi Khuyen (born in 1983, General Director of Tam Loc Phat Group Joint Stock Company) and two Deputy General Directors, Van Dinh Toan (born in 1982), Bui Thi Minh Nguyet (born in 1968) for the crime of Fraudulent appropriation of property.

Previously, on April 19, the Hanoi City Police Investigation Agency issued a decision to initiate criminal proceedings and prosecute the three defendants above.

According to the investigation agency, in June 2019, Nguyen Thi Khuyen, Van Dinh Toan and Bui Thi Minh Nguyet discussed establishing Tam Loc Phat Media Company Limited.

This company is legally represented by Khuyen, headquartered at 27 - V5A, Van Phu new urban area, Phu La ward, Ha Dong district, with charter capital of 30 billion VND.

On June 8, 2021, the subjects increased the company's charter capital to 100 billion VND, but all had no capital contribution. On December 6, 2022, the defendants changed the company's name to Tam Loc Phat Group Joint Stock Company.

At the beginning of the operation, Khuyen invited some acquaintances to join the company and agreed to use the legal entity Tam Loc Phat Company to mobilize money from investors.

Advised to develop a network of brokers to find investors and falsely claim that investors' money was put into production and business by the company.

The Khuyen group offered a method of paying high brokerage fees to those who introduced and invited new investors to the company. The group of defendants offered interest rates much higher than bank interest rates (9.6%/month including principal and interest; interest alone is 2.93%/month) to entice investors who were eager for high interest rates to cooperate, invest, contribute capital, and pay money...

At the same time, the defendants also paid profits to the brokerage group in the form of "multi-level". The F1 office level in the North (there are about 50 offices, each office has 5 people) benefits from 15% of the contract value as soon as the investor signs the contract and pays the money.

Any office that introduces to open another office will receive an additional 2% from the contracts of the newly established office; for the secondary case F2, F1 will be responsible for sharing 10% of the contract value and F3, F4 will also share profits from 15%.

F1 office in the South, enjoy 25% of the contract value of customers found by the Southern office.

At the company, Khuyen was responsible for general operations, representing the company in signing contracts, receiving money from investors and brokers; directing the organization of events to polish the company's reputation and promote a false image...

Toan is in charge of market development strategy; organizing advertising events, promoting images in localities...

Nguyet will buy some items and products to show investors that the company sells products, clothing, cooking oil, MSG, etc. At the same time, Nguyet is also in charge of teaching at branch offices, attracting investors, and directly receiving money from investors. Nguyet benefits from 20% of the contracts directly mobilized.

The money collected from investors, after deducting 15-25% for local offices, the rest is transferred to Khuyen's bank account. Khuyen uses this money to pay those who have contributed capital in installments; personal expenses, buying some real estate, cars; paying salaries for the board of directors and employees in the company...

By September 2023, Khuyen could not pay the old investors because there were no new investors. Therefore, the defendants were denounced by the investors.

According to authorities, from June 2019 to present, the total amount of money Khuyen and his accomplices have mobilized from investors is more than VND5,100 billion. Of which, more than VND1,000 billion from investors were determined to be insolvent.

Authorities said 18 victims representing more than 160 investors, with 322 contracts, have filed complaints with the authorities. The total value of the contracts is more than 61 billion VND.