The CEO of a multi-level marketing company has been prosecuted and taken into custody.

On April 21, the Investigation Police Department of the Ministry of Public Security announced that it had initiated criminal proceedings and temporarily detained Nguyen The Anh, General Director of Phuc Gia Bao 868 Trading and Investment Joint Stock Company, to investigate the act of "fraudulent appropriation of property".

Accordingly, the police arrested Nguyen The Anh on April 16th and simultaneously searched his residence and workplace at the company.

Phuc Gia Bao 868 Trading and Investment Joint Stock Company (headquartered at 44/7 Do Quang Street, Trung Hoa Ward, Cau Giay District, Hanoi City) has been operating since September 25, 2015, under business license number 0107006766.

The company has numerous branches throughout the country, including in Ho Chi Minh City (Tan Binh District), Nha Trang, Binh Dinh, Dak Lak, Nghe An, and other locations.

Previously, on March 23, the Economic and Corruption Crime Investigation Police Department (PC46) of Khanh Hoa Provincial Police received numerous complaints from citizens accusing Phuc Gia Bao 868 Investment and Trading Joint Stock Company, Nha Trang City Branch, of fraud, misappropriation of assets, and multi-level marketing schemes.

The Khánh Hòa Provincial Police initially handled the case, recording statements from the complainants. Later, realizing that the company's operations spanned the entire country, they forwarded the case to the Ministry of Public Security.

According to the investigating agency, Nguyen The Anh introduced his company as an official partner of an American corporation, seeking business cooperation in the fields of building coffee systems, red reishi mushroom cultivation, building a chain of self-service mini-supermarkets, building agricultural supply stores, and developing tourism tours. He proposed two investment levels: a package of 36.6 million VND – with a total amount received after 6 months of investment of 126 million VND; and a package of 72.6 million VND – with a total amount received after 10 months of investment of over 2 billion VND.

Investors can reinvest from the 6th month onwards with reinvestment amounts of 12 million, 100 million, 150 million, and 500 million, earning an interest rate of 5% per year. Interest is collected monthly, and the reinvested amount will be returned after 36 months.

The business cooperation was formalized in a contract, signed by Nguyen The Anh and stamped with the company seal.

However, many participants later received no money. Using the tactic of raising capital with high interest rates, Nguyen The Anh defrauded victims of an estimated more than 300 billion VND.

The case is currently under further investigation and expansion. The Ministry of Public Security is calling on anyone who is a victim of Nguyen The Anh to contact Room 13 - C46 (Ministry of Public Security), telephone number: 0683337888, 258 Nguyen Trai Street, District 1, Ho Chi Minh City to provide information.

According to VNA