More than 8,000 people were scammed by a multi-level coffee "corporation"

The Supreme People's Procuracy has just completed the indictment, authorizing the Hanoi People's Procuracy to hold the right to prosecute and participate in the trial of Nguyen The Anh (39 years old) and 13 accomplices for the crime of Fraudulent appropriation of property with the highest penalty being life imprisonment. The case file has now been transferred to the Hanoi People's Court.

According to the accusation, Phuc Gia Bao 68 Investment and Trading Joint Stock Company (Company 68) with Nguyen The Anh as general director had a charter capital of 20 billion, but in reality it was only 20 million VND. The Anh implemented the business of Organo - Gold coffee brand of the US under the form of multi-level marketing.

The company was not operating effectively, so The Anh came up with the idea of ​​calling for investors to cooperate in business to build a Red Lingzhi Mushroom coffee system. Investors paid money into the company in packages of 12.6 million, 24.6 million, 36.6 million and received VIP coffee cards, attended meetings, traveled, and enjoyed interest (from 24% to 80% per month).

As promised, when investing in the 36.6 million VND package, the first month the customer receives 9 million VND in interest (24.6%), 12 million VND in the second month (32.8%) and the following months receive 16 million VND (43.7%), 22 million VND (60%) respectively. After six months the customer receives a total profit of 125 million VND with the above package (equivalent to 341.5%).

Since July 2015, The Anh has established 10 branches and offices in Gia Lai, Dak Lak, Kon Tum, Long An, Binh Duong, Lam Dong, Ho Chi Minh City...

However, two months later, the branch of company 68 in Binh Dinh was suspended by the investigation agency and its account in Quy Nhon city was locked due to multi-level marketing.

Expanding the market to earn billions, appropriating

In order to continue operating, expand business and collect capital from customers, The Anh established another company, Phuc Gia Bao 868, with a charter capital of 20 billion VND on paper. After that, the defendant established 10 branches and offices from North to South.

Company 68 and 868 have a total of 18 branches and two offices in 15 provinces and cities.

To gain the trust of investors to deposit money into the two companies, The Anh and his subordinates invited, persuaded, and promised that if customers deposited money, they would receive high interest rates. After 868 was established, the defendant created a new investment package of 72.6 million VND and 84.6 million VND.

The defendant directed his employees to organize events for customers to participate in. At the tourism conference in Da Lat and Thailand, The Anh and his subordinates provided information to promote the company's activities, and at the same time rewarded and gave gifts to those who actively invested.

During the conferences, the defendant boasted that he was the representative of an American coffee company in Vietnam. In fact, he did not sell coffee but only bought this type of coffee to serve investors who came to drink it for free...

The Anh also propagandized to investors that 868 was doing business in supermarkets, mining, hotels... But in reality, his company only opened one supermarket in Go Vap district (HCMC), and as soon as it started operating, investors came to collect debts, so it had to close.

From July 2015 to February 2016, through branches and offices, Company 68 and 868 signed more than 8,600 contracts, earning a total of more than 320 billion VND. The amount of interest paid to customers was more than 203 billion VND, the remaining more than 120 billion VND, The Anh and his subordinates spent on personal expenses, gifts and organized tours... for investors.

Up to now, the investigation agency has only clarified that 603 victims have come forward to report.

The prosecution agency accused The Anh of being assisted by Nguyen Van Thong (deputy general director of 868), Nguyen Van Hien (deputy general director of 868) and 11 branch directors. These people were accused of participating in massive advertising, collecting money and using investors' money for the branch's operations. They bought coffee floating on the market to give to those who invested in the company.