Conclusion of Lien Ket Viet multi-level marketing case of billion-dollar fraud

The Ministry of Public Security's Investigation Police Agency has just concluded the investigation into the case of "Fraudulent appropriation of property" that occurred at Vietnam Production and Trade Linkage Joint Stock Company.

On April 13, the Investigation Police Agency of the Ministry of Public Security concluded the investigation into the case of "Fraudulent appropriation of property" that occurred at Vietnam Production and Trade Link Joint Stock Company (abbreviated as Lien Ket Viet Company, headquartered in Hanoi) and related units, according to news in the Nguoi Lao Dong newspaper.

The seven defendants include: Le Xuan Giang, Chairman of the Board of Directors of Lien Ket Viet Company; Nguyen Thi Thuy, Deputy General Director; Le Van Tu, General Director of Lien Ket Viet Company; Trinh Xuan Sang, Le Thanh Son, Nguyen Xuan Truong, Vu Thi Hong Dung, all members of the business development management team.

Lien Ket Viet Company spent money to fake the Prime Minister's certificate of merit and then gave it to itself. Photo: LKV.

According to the investigation conclusion, Lien Ket Viet Company and BQP Medical Equipment Corporation (abbreviated as BQP Company) impersonated the Ministry of National Defense to gain reputation, defrauded people participating in their system to make illegal profits.

The reason for naming the company BQP is to make customers mistakenly think that it is an abbreviation of the Ministry of National Defense, that these two companies as well as their products are associated with units of the Ministry of National Defense.

In fact, BQP Company was established by Le Xuan Giang himself, trading in a number of products including the GREAT-12 physical therapy machine with labels and product logos of the 108 Central Military Hospital, and the G13 Ozone detoxification machine labeled by the assembly and production unit as BQP Company in cooperation with Thanh Ha Company - Ministry of National Defense. However, both of these products are not related to units under the Ministry of National Defense.

Under the name of a multi-level marketing company, Lien Ket Viet Company attracts investors, rents cars to take customers to locations where congresses are held to honor distributors with outstanding achievements.

When arriving at the company, the investor was told by employees of Lien Ket Viet Company and BQP Company that the company was under the Ministry of National Defense and that Le Xuan Giang was a colonel in the army.

They organize rose congresses, award receptions, and awards in a grand manner in places such as Bao Son Paradise, Thanh Xuan District Cultural Center, Hanoi Museum, and right at the Company's headquarters..., awarding top distributors with huge prizes such as apartments worth 1.8 billion VND, cars worth 1 billion VND, SH and Vission motorbikes... reported the People's Police newspaper.

With the grand cover of the Ministry of National Defense and the trick of paying super high commissions as above, from March 2014 to November 2015, Le Xuan Giang and his accomplices expanded the network to develop 34 branches, offices, and agents in 27 provinces and cities, attracting 66,880 people to sign contracts with a total amount of more than 2,091 billion VND.

Of the collected money, Giang spent more than 1,113 billion VND on distributors and company operations. Thus, the defendants used the remaining money and must be held responsible for more than 978 billion VND.

Le Xuan Giang personally had to bear responsibility for more than 871 billion VND (Giang himself said he could not remember all the expenses because he did not know the accounting records and books); Nguyen Thi Thuy personally benefited 36.4 billion VND; Le Van Tu benefited 61.9 billion VND; Trinh Xuan Sang benefited 15.4 billion VND; Le Thanh Son benefited nearly 8 billion VND; Vu Thi Hong Dung and Nguyen Xuan Truong each benefited more than 4 billion VND.

During the investigation, the Investigation Police Agency of the Ministry of Public Security and the Public Security of 49 provinces and cities took statements from 9,100 customers of Lien Ket Viet Company. Basically, these people all declared that they were invited by friends to go to branches, representative offices, and agents to learn about the business activities of Lien Ket Viet Multi-level Company.

These people bought 63,173 product codes with the amount paid being more than 747 billion VND. After deducting the commission and goods they received, they still suffered a loss of more than 423 billion VND.

Meanwhile, up to now, the Investigation Police Agency - Ministry of Public Security has only temporarily detained nearly 148 billion VND of Le Xuan Giang (not including the seized assets). Thus, the possibility of the victim being reimbursed the entire amount of damage is impossible.

This is a common lesson for gullible people who rush into multi-level marketing without understanding that they need to be careful of the "cheese in the mousetrap".

According to Doanhnghiep.vn