What did Tan Hoang Minh use more than 10,000 billion VND mobilized from bonds for?

HA (according to Vietnamnet) • March 20, 2024 06:41

In addition to the remaining balance of more than 214 billion VND in the company account, the entire amount of money raised from the issuance and sale of bonds was used up by Mr. Do Anh Dung, who directed related individuals at Tan Hoang Minh Group.

According to the accusation, in order to sell bonds widely to the public (most of whom are not professional investors), "bypassing" the provisions in Point a, Clause 1, Article 8 of Decree 153/2020/ND-CP, in July 2021, Tan Hoang Minh Chairman Do Anh Dung established the Bond Trading Center under the group; assigned his son Do Hoang Viet, Deputy General Director and Director of the Center, to direct and operate the sale of bonds.

Tan Hoang Minh Company has collected a total of more than 13,972 billion VND, higher than the issuance value due to dividing the term compared to the original term, buying and selling many times higher than the issuance value.

Every day, revenue and expenditure figures are reported to Mr. Do Anh Dung through the Finance - Accounting Center and the Office of the Chairman and General Director for Mr. Dung to monitor, direct and operate.

Because they believed that the bond packages were issued in accordance with the law, had real investment cash flow into the project, had honest financial reports, and that Tan Hoang Minh Company was a large, branded company, many people signed bond investment contracts (in fact, buying bonds) to become owners of 9 bond packages.

Answering questions in court, the two defendants Do Anh Dung and Do Hoang Viet both admitted that most of the money raised from investors was not used for the right purposes.

The accusation stated that the money raised from the bond sale was directed by Mr. Do Anh Dung to be used up as follows:

Use money from the person/contract that bought the bond later to pay the person/contract that bought it earlier, with an amount of more than 5,165 billion VND.

Repaying principal and interest of bank loans, totaling more than 1,976 billion VND.

Payment for purchase of shares, projects, advances, deposits with a total amount of more than 4,568 billion VND.

Paying the expenses of Tan Hoang Minh Group, total amount of more than 929 billion VND.

Transferred money for personal purposes of Mr. Do Anh Dung such as investing in stocks, paying personal debts, buying and selling USD... total amount of more than 801 billion VND.

The remaining balance in Tan Hoang Minh Company's account at the time of prosecution was more than 214 billion VND (the Ministry of Public Security's Investigation Police Agency recovered this amount after initiating the case).

Thus, in addition to the remaining 214 billion VND, the entire amount mobilized from the issuance and sale of bonds in violation of the law was used by Mr. Do Anh Dung, directing the defendants and related individuals at Tan Hoang Minh Company to use it all, not in accordance with the purpose and plan of the bond issuance.

At the Tan Hoang Minh trial on March 19, Mr. Do Anh Dung and his son confirmed that they had remedied all the consequences of the case. Meanwhile, investors who were victims all hoped to receive back the money they had invested in Tan Hoang Minh bonds. The victims even hoped to receive interest and penalties.

During the investigation and prosecution process, the Investigation Agency has recovered the cash flow used from the sale of bonds; temporarily detained the amounts of money that the defendants, their families, Tan Hoang Minh Company and related organizations deposited into the temporary account of the Investigation Agency, the Civil Judgment Enforcement Department of Hanoi City, totaling more than VND 8,645 billion to remedy the consequences of the case.

The investigation agency also seized and frozen transactions on assets including 8 apartments, houses, land; securities accounts, and money balances in the accounts of the defendants and people involved in the case.