Prosecution of General Director of GFDI Company and subordinates for defrauding more than 3,700 billion VND

The Investigation Police Agency (Da Nang Police) has initiated a case and prosecuted Mr. Nguyen Quang Hoang - General Director of GFDI Investment Consulting Company Limited (GFDI Company) to investigate the act of "fraudulent appropriation of property".

For the same conduct, the police also prosecuted the defendants including Nguyen Do Dat - Finance Director; Tran Thi My Hanh - Head of Treasury Department; To Hong Tra and Tran Thi Kieu Trang - Director and Deputy Director of the Transaction Office Branch.

During the investigation, the police determined that GFDI Company was granted a business registration certificate with a charter capital of 80 billion VND, its main business line being management consulting and investment consulting (excluding securities investment activities).

The company established its headquarters at 92 29/3 Street, Hoa Xuan, Cam Le, Da Nang City and 12 branches in many provinces and cities.

Since May 2018, this company has been raising capital by signing loan contracts with customers in Da Nang and some other localities.

To gain customers' trust and lend money to the company, Mr. Nguyen Quang Hoang directed branches, sales departments, and sales staff to advertise and provide false information that all of the customers' cash flow would be used by GFDI Company to invest in projects with high profitability such as restaurants, consumer goods production and commerce... and at the same time committed to customers to repay the principal and interest according to the signed contract.

To increase trust and attract customers, Mr. Hoang directed GFDI Company to publish advertising publications, run many marketing programs to introduce the above investment projects, and at the same time offer attractive loan interest rates, much higher than bank interest rates such as 1-month package (interest rate 1.5% - 2%), 3-month (interest rate 2.5%/month), 6-month (interest rate 3%/month), from 9 months or more (interest rate 3.5%/month).

However, after receiving money from customers, Hoang misused it and used it mainly for expenses for loan solicitation activities as well as paying interest on due contracts.

The initial investigation determined that defendant Nguyen Quang Hoang had appropriated more than 3,700 billion VND from 7,541 customers.

Mr. Hoang's criminal acts were supported and assisted 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 many accounts related to the misappropriated cash flow to serve the work of compensation and remedying the consequences caused by the defendants' criminal acts.

The Kinh Police Department is expanding the case to continue clarifying the roles of related subjects; at the same time, continuing to review and take measures to recover the maximum amount of misappropriated assets to help the people.