Arrested a group lending tens of billions of dong at interest rates over 200%/year in Nghe An

Nghia Dan District Police are temporarily detaining Le Dinh Thuoc (born in 1976), Phan Thi Hoa (born in 1970) and Pham Van Mai (born in 1960), all residing in Nghia An Commune, Nghia Dan District, for the crime of lending money at high interest rates in civil transactions. At the same time, they have summoned more than 20 "debtors" to avoid the case where these subjects are afraid of fleeing, causing difficulties for the investigation and evidence collection process.

Subject Le Dinh Thuoc and the seized exhibits in Project 719H. Photo: Minh Thai

Previously, through reconnaissance work, Nghia Dan District Police discovered that the situation of "black credit" activities and lending at high interest rates in the district was very complicated. The subjects took advantage of the difficult economic life of some people, or some people who urgently needed money to lend at high interest rates, illegally earning hundreds of millions of dong.

Normally, the lenders charge an interest rate of 5,000 VND/million/day, equivalent to 180%/year. In some cases, they charge an interest rate of 7,000 VND/million/day, equivalent to 252%/year.

Due to borrowing at too high interest rates, borrowers mostly only have enough income to pay interest but cannot pay the principal. In some cases, they cannot even pay the interest when the payment deadline comes and have to pay compound interest (interest on top of interest). Most borrowers are unable to pay, some have to flee, some have been threatened, controlled, coerced, injured by the lenders... seriously affecting security and order and causing public outrage.

Based on that situation, in early July 2019, Nghia Dan District Police established Project 719H to concentrate forces to fight against subjects operating in "black credit" and loan sharking in the area and neighboring districts. After the Project was established, detectives increased their surveillance of the area, focusing on monitoring all movements of the subjects.

Captain Ngo Anh Tuan - Deputy Chief of Nghia Dan District Police said: "Most of the subjects have complex social relationships, using many sophisticated and cunning tricks to deal with the authorities. Some subjects take advantage of pawnbroking services to lend money at high interest rates; when making papers and loan contracts, the interest rate is not shown; when the interest rate reaches nearly 30 million VND, the subjects ask the borrower to make new papers and loan contracts to avoid detection.

At the same time, destroy related papers and documents after the borrower has paid off all debts; rarely mention the loan interest rate on documents but only discuss directly or ask or hire powerful people with many criminal records, "mafia" to collect debts but do not directly appear...".

Evidence seized from members of a loan shark gang. Photo: Minh Thai

After a period of persistent monitoring and synchronous use of professional measures, when determining that the opportunity was ripe, at 10:00 a.m. on July 16, 2019, the Task Force decided to crack the case. According to the plan, 4 investigation teams simultaneously executed an emergency detention order against 3 subjects: Le Dinh Thuoc, Phan Thi Hoa and Pham Van Mai for the act of lending at high interest rates in civil transactions.

During the arrest, the subjects did not cooperate and showed signs of resistance. However, with sharp professional measures, the police force forced them to put their hands in handcuffs; at the same time, seized evidence including: 1 car, 3 motorbikes, 5 mobile phones, more than 500 million VND in cash and many books, papers and documents related to loan sharking activities.

At the investigation agency, at first the subjects were evasive, denied their crimes, and gave only partial statements, but before the evidence and documents collected, they had to admit their crimes.

During the investigation, the Investigation Committee determined that from 2017 to now, each subject has lent money to hundreds of people in Nghia Dan, Thai Hoa Town, Quy Hop... every year at very high interest rates, illegally earning hundreds of millions of dong. In particular, from 2018 to now, Thuoc has lent a total of about 6 billion dong, illegally earning about 900 million dong; Hoa has lent about 2.5 billion dong, illegally earning about 400 million dong; Mai has lent about 3 billion dong, illegally earning about 500 million dong.

Currently, Nghia Dan police have initiated a case and prosecuted the defendant to continue the investigation.