Lawyer: It is possible to prosecute the case of black credit collapse of tens of billions of dong in Nghe An

Black credit worth tens of billions of dong collapsed in Nghe An

(Baonghean.vn) - Although not allowed to mobilize capital, a private enterprise in Yen Thanh still issued savings books, received money from hundreds of people and then declared "bankruptcy".

Hundreds of households in Nghe An are miserable because of the black credit collapse.

(Baonghean.vn) - Since the day the company director suddenly declared bankruptcy, many families have fallen into misery.

The black credit collapse of tens of billions of dong in Nghe An: Suspicion of asset dissipation

(Baonghean.vn) - More than a year after declaring bankruptcy, Mr. Phuc and his wife still live in a spacious house that was said to have been transferred to his younger brother.

On April 16, after reviewing documents and people's accounts in the black credit collapse of tens of billions of dong in Yen Thanh district, lawyer Nguyen Trong Hai - Head of Trong Hai and Associates Law Office, said that this case is no longer a normal civil transaction, but a financial business activity.

“Therefore, it is necessary to consider whether this enterprise has a business license or not. In the case of not having a license in the financial business sector, this enterprise by its actions (paying higher interest rates than banks, issuing savings books, etc.) is violating the law on banking finance and the law on credit institutions. In fact, here, by these tricks, Phuc Nhien enterprise has shown signs of “property appropriation”, said lawyer Hai.

The "savings books" produced by Phuc Nhien enterprise are very similar to those issued by banks. Photo: TH

According to the lawyer, the act of mobilizing capital, issuing savings cards, paying interest rates higher than the bank's basic interest rate to appropriate customers' money through the activity of "borrowing, lending, renting other people's assets or receiving other people's assets by contract and then using fraudulent tricks to appropriate that asset or when the deadline for returning the asset comes, despite having the conditions and ability, deliberately not returning it;

Borrowing, renting, or receiving another person's property by contract and using that property for illegal purposes, resulting in the inability to return the property, may be subject to criminal prosecution for the act of "Abusing trust to appropriate property" (According to Article 175 of the 2015 Penal Code).

Lawyer Nguyen Trong Hai said that although Phuc Nhien Gold and Silver Private Enterprise illegally conducted business related to credit activities, the 2015 Penal Code has now removed this crime. “But it is also necessary to consider the retroactive element according to Point e, Clause 1, Article 1 of Resolution No. 109/2015/QH13 dated November 27, 2015 on the implementation of the 2015 Penal Code, which provides the following guidance: “… illegal business activities prescribed in Article 159, … of the 1999 Penal Code occurred before 0:00 on July 1, 2016, and after that time the case is under investigation, prosecution, and trial, the provisions of the 1999 Penal Code shall continue to be applied to handle it,” said lawyer Hai.

“That means, illegal business activities that occurred before July 1, 2016 have sufficient elements to constitute a crime. After the 2015 Penal Code takes effect, but the case is still under investigation, prosecution, and trial, the provisions of the 1999 Penal Code will still be applied to handle it,” Mr. Hai added.

Phuc Nhien Enterprise recently removed its signboard. Photo: TH

Previously, as reported by Nghe An Newspaper, for many years now, Phuc Nhien Gold and Silver Private Enterprise, directed by Mr. Tran Van Phuc (50 years old, Bao Thanh Commune, Yen Thanh), has been producing savings books to mobilize capital from hundreds of people. However, Mr. Phuc and his wife later turned around, suddenly declaring "bankruptcy", refusing to pay them. The case has lasted for more than a year, and Yen Thanh District Police have also received many complaints from people for more than 7 months now.

According to the State Bank of Vietnam, Nghe An branch, the capital mobilization and issuance of savings books by this enterprise are illegal activities, violating the Law on Credit Institutions. The State Bank and the Department of Planning and Investment both affirmed that they did not grant this enterprise a license to mobilize capital.