Director of finance company defrauds over 300 billion VND.
Hoang Nam, director of PFS Financial Investment Joint Stock Company, testified that he promised investors interest rates ranging from 1.5% to 6%, depending on the time. However, when the company needed more capital, he paid higher interest rates.
On the afternoon of February 20th, the Ha Dong District Police (Hanoi) announced that they have initiated a criminal case and indicted Hoang Nam (born in 1979, from Ninh Binh City, Ninh Binh Province) for the crime of fraud and appropriation of property.
At the police station, Hoang Nam confessed: "I promised investors that I would pay interest rates ranging from 1.5% to 6%, depending on the time. Sometimes it was 1.5%. But when the company needed more capital, I paid a higher interest rate. However, the operation was difficult, so I misused the capital," Hoang Nam admitted.
Initial investigations revealed that in December 2020, Hoang Nam established PFS Financial Investment Joint Stock Company and was granted a business registration certificate by the Ho Chi Minh City Department of Planning and Investment.
PFS operates in the field of providing financial and banking loan consulting services and lending through various forms of credit, including secured and collateralized loans.
During the operation, Nam organized seminars that attracted large crowds and solicited investment capital for the PFS company; he also promised to use their money to lend to individuals and organizations, thereby generating profits and paying investors a rate of 2% - 6% of the invested capital per month, for a period depending on the business cooperation contract signed with the company. Upon expiration of the contract, investors would be reimbursed their invested capital.
To build trust, Nam also promised that as soon as the investor deposited 100 million VND, the company would pay a bonus equivalent to 0.5 tael of 9999 gold.
PFS Company does not have any business partnerships with any entity or enterprise, and uses account number 5899999989999 to receive funds from investors.
After receiving the money, Nam used the funds from later investors to pay profits to earlier investors, pay employee salaries, and cover office rent. The remaining amount was used to pay off debts and personal expenses, and he is now unable to repay the rest.