"Businessman" in multi-level marketing, embezzling investors' money

According to a source of the reporter, Can Tho City People's Court has completed the file and is preparing to bring to trial the case of "Fraudulent appropriation of property" using multi-level marketing to mobilize capital.

The defendant in this case is Trinh Xuan Manh (38 years old, residing on Bui Thi Xuan Street, Ward 1, Tan Binh District, Ho Chi Minh City) - former Director of RFIVN Real Estate Investment and Trading Joint Stock Company (RFIVN Company).

According to the indictment, RFIVN Company is headquartered at 307/1A Nguyen Van Troi Street, Ward 1, Tan Binh District, Ho Chi Minh City. Manh hired Nguyen Hong Minh as a senior strategic advisor for his company.

In addition, Manh also hired Nguyen Trong Luan (identity unknown) to design and manage the website: rti-roy.com and hired several other people as chief accountant, financial director, customer service staff...

Manh's trick is to create the image of RFIVN company as a representative company for American RFI corporations in Vietnam.

Specifically, it specializes in investing in large real estate projects; or multinational companies with foreign investment capital that have participated in many large projects of corporations such as Bitexco, the metro project in Ho Chi Minh City... to create trust with investment customers to mobilize capital and then appropriate.

Trinh Xuan Manh was accused of organizing seminars to promote the company's image and call on many people to sign business cooperation agreements in the form of capital contributions to share profits, with high interest rates.

Investors who want to become shareholders of RFIVN company must sign a capital contribution contract of at least 1,000 USD. Of which, the account maintenance fee is 10 USD.

After that, the investor is given an ID account, and the capital and interest are paid according to the capital contribution contract through the bank account. If investing 1,000 USD for 3 years and 9 months, equivalent to 1,365 days, the investor will receive 2,987 USD.

The indictment determined that for those who introduced more investors to the company, Manh would receive 5% of the total investment referral amount and 0.25% of the commission when introducing new investors.

In addition, Manh offers rewards to investors by giving 1 SJC gold bar to anyone who invests 3 - 5 IDs and giving a car to anyone who introduces 1,000 IDs.

To gain investors' trust, Manh also opened 4 more branches in the North, Central, South and West.

Manh is accused of using the above tricks, in a short period of time this 'businessman' called on 14 people to trust him and contribute capital to appropriate more than 531 million VND.

Through investigation and verification, RFIVN company is not a multinational company, does not participate in the projects as Manh said and does not do any business to generate profit. Manh's purpose is to call on many people to contribute capital, with high interest rates.

Take money from later investors to pay earlier investors. After attracting many investors, Manh will appropriate their money.