No prosecution in the case of black credit collapse of tens of billions of dong in Nghe An

On November 25, Mr. Le Van Thanh (62 years old, Son Thanh commune, Yen Thanh) said that he had just received a notice from Yen Thanh district police about not prosecuting the case of illegal credit worth tens of billions of dong that Mr. Thanh had filed a complaint about. At the same time, more than 160 other households also received similar notices from the investigation agency.

The notice signed more than 3 months ago briefly stated the reason for not prosecuting criminally because "the act of mobilizing capital from 164 citizens through issuing savings books and using the mobilized capital to lend to others at higher interest rates, but up to now, the capital has not been recovered to pay the principal and interest to the depositors of Ms. Ta Thi Lien - Owner of Phuc Nhien Gold and Silver Enterprise does not constitute a crime".

The Yen Thanh Police's notice was signed in August, but it took more than 3 months for people to receive it. Photo: Tien Hung

Previously, since the beginning of 2018, hundreds of people in Yen Thanh, Nghi Loc have simultaneously filed a complaint against the couple Ta Thi Lien and Tran Van Phuc - Owners of Phuc Nhien Gold and Silver Enterprise for fraud and property appropriation. This enterprise has specialized in trading gold and silver, buying and selling foreign currencies at the store in front of Bong market (Bao Thanh commune) for many years.

However, for the past 5 years, this enterprise has also produced its own “savings books” and mobilized capital from hundreds of households in the area. After each time it mobilized money from the people, this enterprise gave them a “savings book”. This book looks very similar to a savings book issued by a bank. The book also has the seal of Phuc Nhien Private Gold and Silver Enterprise. Inside the book, there is only the name, address of the depositor, the amount of money deposited and the annual interest rate.

According to the people, in previous years, this company paid them interest regularly. Many families trusted it, and while they did not need the money yet, they continued to use the interest to deposit more. However, by the end of 2016, people began to receive information that this company was "insolvent".

The house of Mrs. Lien and her husband in the center of Bao Thanh commune. Photo: Tien Hung

“When we first came to his house, Mr. Phuc and his wife asked for more time. However, since the beginning of 2017, they have challenged us again,” said Mr. Le Van Thanh, who is depositing 5,000 euros at this company.

The incident dragged on, hundreds of households regularly came to Ms. Lien’s house to demand money as well as to the authorities to request intervention. There were many times when the residents and the business owner fought. A few months ago, while going to the gold shop owner’s house to demand money, after a fight, a resident of Son Thanh commune was injured and had to be hospitalized and another household’s motorbike was chopped into pieces during the struggle….

The victims of the incident shared with reporters. Photo: TH

According to the reporter's investigation, the amount of money that this company is accused of embezzling is up to more than 30 billion VND. Currently, the assets of Ms. Lien and her husband such as cars, many houses and lands have been transferred to other owners. However, this couple still lives in this spacious house and travels by car registered in someone else's name.

The "savings books" produced by this enterprise are very similar to those issued by banks. Photo: Tien Hung

Speaking to Nghe An Newspaper reporters after carefully reviewing the complaint and related documents, Mr. Doan Manh Ha - Deputy Director of the State Bank of Vietnam, Nghe An branch, affirmed that this is an illegal business activity. Accordingly, the Law on Credit Institutions "strictly prohibits individuals and organizations that are not credit institutions from conducting banking activities, except for margin transactions, securities purchase and resale transactions of securities companies".

“This enterprise is not licensed. It can be confirmed that Phuc Nhien Private Gold and Silver Enterprise receives deposits in the form of issuing savings books, which is a banking activity. It violates the provisions of Clause 2, Article 8,” said Mr. Ha.

According to the Nghe An Department of Planning and Investment, Phuc Nhien Private Gold and Silver Enterprise registered its business in early 2011. In its business license, this enterprise is only allowed to operate in the following industries: pawnshop services; foreign currency payment services according to the license; buying and selling gold, silver, precious stones; processing and manufacturing gold, silver, precious stones, jewelry, fine arts and producing gold, silver, fine arts jewelry.

“The fact that this business issues savings books on its own is completely illegal. Also known as “black credit” - the representative of the Department of Planning and Investment affirmed.

Tien Hung