Multi-level marketing fraud, received 15 years in prison

During 9 months of multi-level marketing, through 2 "ghost" companies, Linh defrauded dozens of people, earning nearly 5.5 billion VND.

On January 28, the Ho Chi Minh City People's Court of Appeal sentenced Truong Van Linh (44 years old, residing in Ben Tre) to 15 years in prison for fraud and appropriation of property.

According to the indictment, in September 2011, Linh and two others opened SOB Niem Tin Viet Investment Trading Service Joint Stock Company, headquartered in Tan Binh District, Ho Chi Minh City. The company's business lines include trading in nutritional foods, cars and other motor vehicles, investment consulting, etc.

In fact, Linh established this business to serve the purpose of fraud, with absolutely no goods or capital to operate or do business.

Although not licensed, this director still proposed his own e-commerce and multi-level marketing business program to attract investment. The first method was to lure people to buy a code for more than 1.8 million VND to become a member of the company. After paying, the victim would receive a perfume or ginseng product to "sell", with profits increasing by each level when introducing others to join.

Linh covered her face as she was escorted after the trial. Photo: KT

The second way is for people to buy shares of the company for 50 million VND, and will receive profits on the 7th of every month. From September 2011 to January 2012, many people bought shares or bought codes to become employees of Niem Tin Viet Company. To create trust, Linh used the money of the latter to pay interest and commission to the former.

After having appropriated a large amount of money, Linh stopped the operation of Niem Tin Viet Company and established Futsion Joint Stock Company with a similar operating method. In June 2012, many people did not receive the money as promised from these two companies so they went to the headquarters and discovered that Linh had fled. On November 14, 2014, this director was arrested.

According to the conclusion of the investigation agency, in 9 months of multi-level marketing business (September 2011 - June 2012), through 2 "ghost" companies, Linh defrauded 26 people, appropriating nearly 5.5 billion VND. Of this amount, he used 1.9 million to pay commissions and interest to members, and pocketed the rest.

According to Zing.vn