Plan to set up the largest online gambling system in the country

After more than a year of investigation and prosecution, in mid-November, the People's Court of Phu Tho province will hold a first-instance trial of 92 defendants in the case of a transnational trillion-dollar gambling ring.

The case file determined that in 2014, Phan Sao Nam (35 years old, Chairman of the Board of Directors and Director of VTC Online Media Joint Stock Company - VTC Online) met Hoang Thanh Trung (36 years old, former Director of the Software Center - VTC Technology and Digital Content Company - VTC Intecom) boasting about owning software and a team of good technicians who could develop and operate an online gambling software system in the form of card games.

Trung proposed to find a legal entity to build and develop online gambling software. In response, Nam contacted Do Bich Thuy (owner of Nam Viet Real Estate and Housing Development Company Limited) and opened a representative office in Hanoi, giving Trung full authority to manage it.

Knowing that the High-Tech Security Development Investment Company Limited (CNC) is a front company of C50 (Department of High-Tech Crime Prevention and Control, General Department of Police), Nam invited Nguyen Van Duong (CNC Chairman) to cooperate in releasing online gambling software and was accepted.

In early April 2015, Duong directed his subordinate Luu Thi Hong (CNC General Director) to sign a contract with Nam to provide software services and technology solutions, and to exploit the business under the name RikVip. According to the revenue sharing agreement, CNC received 30% and VTC Online received 70%, with adjustments depending on the stage and payment method of the customer.

After signing the contract with CNC company, Phan Sao Nam directed Phan Anh Tuan (VTC online deputy director of technology) to buy equipment and sign a contract to rent a server location in Cau Giay district. Phan Anh Tuan and the technical staff of VTC online company then set up a system of 262 computers for the RikVip card game to operate.

Tuan also instructed Nam to find payment channels for gamblers to use money in the accounts of 33 banks in Vietnam, and to sign contracts to distribute Gocoin cards with a number of telecommunications units.

To pay rewards to players, Phan Sao Nam directed Le Van Kien to contact and buy electronic card codes from many telecommunications companies to enter into the reward card warehouse in the database system of the RikVip card game portal.

In mid-April 2015, the RikVip card game software was completed by Hoang Thanh Trung and began organizing online gambling.

Revenue of trillions

To develop the RikVip card game and increase revenue from online gambling, Trung directly established a general agent. When participating in the RikVip game portal, players use virtual money (called Rik).

Trung handed over the Skyline general agent account to Le Anh Tu to manage. After more than half a year of operation (2015), Skyline general agent has transacted with a real amount of money traded up to more than 200 billion VND.

During the operation, Tu and Trung had a conflict regarding management, so in February 2016, Trung continued to direct his subordinates to create a general agent account named Worldbank69 to replace Skyline. Trung handed over this general agent to his younger brother to manage. In more than a year of operation, this agent transacted nearly 2,000 billion VND.

Trung continues to build a level 1 agent system to develop and expand the network. After creating accounts and creating agent management tools, level 1 agents continue to expand and build a level 2 system...

In addition to revenue from the difference in buying and selling prices of Rik with players, level 1 agents also benefit from exchanging Vippoints and "racing for top events". Vippoints are a feature of the Rikvip/ Tip.club card game to show gratitude to customers and agents. When accumulating a certain amount of Vippoints, level 1 agents can convert them into Rik and Rik can be converted into cash.

The first level-one agent that Trung set up was Do Duc Truong, and from there he developed 64 “level-two agents”. Under Truong’s management, these agents lured card game players to participate in virtual point trading transactions worth more than 340 billion VND. Truong benefited more than 300 million VND.

After Truong, Trung continuously built a network of first-level agents throughout the country. From mid-2015 to mid-2017, 25 first-level agents created and operated by Trung created 6,000 second-level agents with 43 million gambling accounts "covering" the whole country.

Among the first-level agents created by Trung is agent Vu Van Dung living in Ho Chi Minh City. In nearly two years, Dung has developed more than 1,000 second-level agents, trading a total amount of Rik of more than 4,700 billion Rik, equivalent to nearly 4,000 billion VND. Dung has profited nearly 10 billion VND.

Create a front to hide the crime ring

Since the end of 2016, to avoid detection by authorities, Nam and Duong agreed to change the legal entity issuing the RikVip card game and not record revenue from organizing online gambling into the company, perform reconciliation, and pay in cash, without invoices.

On August 24, 2016, Duong directed Hoang Dai Duong (Director of Viet Solution Company) to establish Hai Khanh Software Trading Investment Company Limited (Hai Khanh Company) to replace CNC to release the RikVip card game portal, but changed the new name to Tip.Club.

At the end of 2017, Duong once again transferred the release of the Tip.Club card game portal to another company. In fact, Duong was behind the direction of all activities.

Nam, Duong and Trung also directed the construction and integration of the 23Zdo card game portal (using virtual currency Zdo); in the Tip.Club phase, they directed the construction and integration of the ZonClub card game portal (using virtual currency named Zon), providing online gambling forms similar to the RikVip and Tip.Club card games to give gamblers more options.

Players can convert virtual currency Rik, Zon, Zdo to participate in online gambling at card game portals RikVip/Tip.Club, 23Zdo, ZonClub, because all card game portals operate on the same technical platform, electronic payment system, agent system and are all operated by Nam Viet Company.

According to the indictment of the People's Procuracy, the gambling line through the card game Rikvip/Tip.club was determined to have organized a network of 25 "level 1 agents", nearly 5,900 "level 2 agents" and nearly 43 million participating accounts. The total revenue has been proven to be nearly 9,900 billion VND. Of which, the money used for telecommunications cards and game cards is more than 8,840 billion VND; Vcard is more than 460 billion VND; ATM cards of banks are more than 186 billion VND...

After deducting the bonus payment costs and the management and tax expenses of the operating companies, the profit of more than VND4,700 billion was divided among several individuals. Specifically, Nam received more than VND1,470 billion; Duong more than VND1,650 billion; the group of three people on the run (Phan Anh Tuan, Hoang Thanh Trung and Le Van Kien) received more than VND1,570 billion.

Nam and Duong are currently being prosecuted for two crimes.Gambling organizationandMoney launderingAccording to Articles 249 and 251 of the 1999 Penal Code. Regarding the case, the investigation agency determined that this online gambling ring was "backed" by former Director General of the General Department of Police Phan Van Vinh and former Director of Department C50 Nguyen Thanh Hoa. Mr. Vinh and Hoa will appear in court with Nam, Duong and 88 others.