GFDI General Director Arrested for Defrauding More Than 7,000 Investors

On November 18, Nguyen Quang Hoang and Tran Thi My Hanh, Head of the GFDI Treasury Department, were prosecuted and detained by Da Nang Police to investigate the act of fraud and property appropriation.

With the same crime, a group of GFDI officials, Nguyen Do Dat, Finance Director; To Hong Tra, Director of the Transaction Office branch and Tran Thi Kieu Trang, Deputy Director, were prosecuted but banned from leaving their place of residence.

Nguyen Quang Hoang, 36 years old, is the General Director of GFDI Investment Consulting Company Limited, whose main business lines are management consulting and investment consulting (excluding securities investment activities).

In Da Nang, the company established its headquarters in Hoa Xuan ward, Cam Le, a transaction office branch in Hai Chau district and 11 branches in Hanoi, Nghe An, Quang Binh, Quang Tri, Hue, Dak Lak, Binh Dinh, Khanh Hoa, Can Tho, Ho Chi Minh City, Ba Ria - Vung Tau.

From May 2018 to present, GFDI has raised capital by signing loan contracts with customers.

Authorities accused General Director Hoang of directing the release of false information that all of the customers' cash flow would be used by GFDI Company to invest in highly profitable projects such as F&B (Da Nang Lang Nghe Restaurant; Quang Tri Lang Nghe Restaurant); consumer and commercial goods production: Seneco, Enzy Food, K-Products, film production... The company committed to repaying the principal and interest according to the contract.

GFDI publishes advertising publications, runs many marketing programs to introduce the above investment projects, and offers attractive loan interest rates, much higher than bank interest rates. Among them are one-month packages (interest rate 1.5-2%), 3-month packages (interest rate 2.5% per month), 6-month packages (interest rate 3% per month), and 9 months or more (interest rate 3.5% per month).

After receiving money from customers, Hoang misused it and used it mainly for expenses for loan solicitation activities as well as paying interest on due contracts.

The investigation agency accused Hoang of appropriating more than VND3,700 billion from 7,541 customers. This act was supported and assisted by Dat, Hanh, Tra and Trang.

Previously, from November 5-8, when Hoang announced that the company was bankrupt, hundreds of GFDI customers gathered in front of the company's headquarters to demand their rights. According to many customers, the company signed a capital mobilization contract that at times was up to 50%/year, and the high profits made them pour money in.