The CEO of GFDI and his subordinates have been prosecuted for defrauding over 3.7 trillion VND.
The police have initiated criminal proceedings against Nguyen Quang Hoang, General Director of GFDI Company, and four subordinates to investigate a fraud case involving the misappropriation of over 3,700 billion VND from 7,541 customers.
The Investigation Police Department (Da Nang Police) has initiated a criminal case and indicted Mr. Nguyen Quang Hoang, General Director of GFDI Investment Consulting Co., Ltd. (GFDI Company), for the crime of "fraudulent appropriation of property".
In connection with the same offense, the police also prosecuted the following defendants: Nguyen Do Dat - Director of Finance; Tran Thi My Hanh - Head of Treasury Department; To Hong Tra and Tran Thi Kieu Trang - Director and Deputy Director of the Branch of the Stock Exchange.
During the investigation, the police determined that GFDI Company was granted a business registration certificate with a charter capital of 80 billion VND, and its main business activities were management consulting and investment consulting (excluding securities investment activities).
The company has its headquarters at 92 29/3 Street, Hoa Xuan Ward, Cam Le District, Da Nang City, and 12 branches in various provinces and cities.
From May 2018 to the present, this company has been raising capital by signing loan agreements with customers in Da Nang and several other locations.
To gain the trust of customers and secure loans for the company, Mr. Nguyen Quang Hoang instructed branches, sales departments, and sales staff to advertise and provide false information, claiming that all customer funds would be used by GFDI Company to invest in highly profitable projects such as restaurants, consumer goods manufacturing, and trade… while also promising customers that the principal and interest would be repaid according to the signed contract.
To increase trust and attract customers, Mr. Hoang instructed GFDI Company to publish advertising materials and run numerous marketing programs introducing the aforementioned investment projects. Simultaneously, they offered attractive loan interest rates, significantly higher than bank rates, such as 1-month packages (1.5% - 2% interest), 3-month packages (2.5%/month), 6-month packages (3%/month interest), and packages of 9 months or more (3.5%/month interest).
However, after receiving the money from customers, Hoang misused it, primarily using it for expenses related to soliciting loans and paying interest on contracts that were due.
Initial investigations determined that the suspect, Nguyen Quang Hoang, had defrauded 7,541 customers of a total of more than 3,700 billion VND.
Mr. Hoang's criminal acts were aided and abetted by the defendants Nguyen Do Dat, Tran Thi My Hanh, To Hong Tra, and Tran Thi Kieu Trang.
The police have reviewed and identified 24 assets and numerous accounts related to the misappropriated funds, in order to facilitate compensation and remediation of the consequences caused by the defendants' criminal acts.
The Economic Police Department is expanding the investigation to further clarify the roles of the individuals involved; at the same time, they are continuing to review and take measures to recover as much of the stolen property as possible to compensate the people.
