Chairman of 2 multi-level marketing companies embezzled hundreds of billions of dong from investors

The Supreme People's Procuracy has just completed the indictment, proposing to prosecute Lam Huu Son (Chairman of the Board of Directors of King Vietnam Real Estate Construction Joint Stock Company and 5F Capital Investment Consulting and Management Joint Stock Company) for the crime of Fraudulent appropriation of property under Article 139 of the 1999 Penal Code.

Three subordinates Phan Van Cuong (general director of King Company), Nguyen Hong Minh (deputy general director of 5F Company) and Dao Van Y (employee of 5F Company) were also prosecuted under Article 139.

Seven months earlier, the Hanoi People’s Court had brought the case to trial with the defendants Son, Minh and Y, while Cuong was on the run. However, at the time of the trial, the investigation agency announced that Cuong had been arrested, so the court returned the file to include this defendant in the case.

According to the accusation, Son promoted King as a corporation operating in the financial sector, wishing to bring prosperity to customers with high-profit investment cooperation products.

In addition, King is a strategic partner of FBS Markets - an international broker providing top quality services and financial investments worldwide and a range of other companies.

Son outlined King's projects as comprehensive cooperation with the Banking Academy to train and grant students the only prestigious financial investment certificate in Vietnam; Yen Hotel system; Beauty care center; Mineral exploitation in Phu Tho, Bar of King restaurant chain...

With the above promotion, King needs investors to contribute capital to the company. Son stipulates that customers who lend the company 30 million VND or more will receive interest rates of 36% (3-month term), 38.4% (6-month term), 42% (9 months) and 45.6% (1-year term).

King's employees are rewarded with commissions based on the amount of money customers lend to the company. Accordingly, the company's employees have actively and proactively met and consulted with customers about King's capabilities and about effective business projects...

According to the accusation, King has no connection with FBS Markets. 5 out of 9 projects King promotes are "fake", the rest of the company has no connection.

However, believing in high interest rates, from April to November 2014, 140 customers signed 285 contracts with King, paying a total of more than 45 billion VND. Of which, Son signed 150 contracts, Cuong 134 contracts...

After King stopped operating, Son and his subordinates paid many customers, but also appropriated nearly 20 billion VND from 97 people.

Continue to set up multi-level marketing companies to appropriate hundreds of billions of dong

Son continued to establish 5F Company and appointed Nguyen Hong Minh as deputy general director and Dao Van Y as business consultant.

Son directed his subordinates to organize seminars, talks, and propaganda sessions. 5F has 14 effective business projects, with profits from 17% to 20% per month. 5F offers 4 investment packages, from 20 million VND or more, capital contribution in 6 months, profit 36%/year; 1 year is 42%; package 70 million VND or more, interest rate from 42% to 48% per year, package 120 million to 200 million VND, interest rate per year 54% - 72%.

In addition, investors who introduce customers to contribute capital to the company will be paid a commission of 35% to 50% of the monthly profit of the next person. 5F also organizes tours to Thailand, Nha Trang, and gives away a gold bar, iPhone... to customers who contribute capital.

5F commits to pay profits on the day customers contribute capital; commission paid at the beginning of the month.

With "huge" interest rates and travel and gift policies, from July 2015 to May 2016, 568 investors signed 947 contracts, paying 5F more than 153 billion VND. Of this amount, Son used more than 37 billion VND, the rest was used for interest, commissions, and company operations.

The prosecution accused Son and his accomplices of defrauding more than 600 people through two multi-level marketing companies, appropriating more than 160 billion VND.