Exposing the tricks of the former credit fund director who embezzled tens of billions of dong
For a long time, the Director of the Nghi Hoa Commune People's Credit Fund (Nghi Loc) directed his subordinates to create fake documents and loan files... to embezzle nearly 24 billion VND. The group of subordinates, out of deference and dependence on their superiors, created many fake loan files. When the incident was exposed, the mastermind quickly fled abroad.
Director embezzled tens of billions
Nghe An Provincial People's Court has just opened a trial of the case."Embezzlement of property"at the People's Credit Fund (TDND) of Nghi Hoa commune, Nghi Loc district. The defendants in the case include: Nguyen Thanh Cong - former Director of the People's Credit Fund of Nghi Hoa commune; Dang Van Thanh - Deputy Director; Tran Thi Ngoc Ha - Chief Accountant; Tran Thi Ha Phuong - Credit appraisal officer; Nguyen Thi Phuong Thao - Cashier.
Nghi Hoa Commune People's Credit Fund was established in 1995 under the Decision of the Director of the State Bank of Nghe An province branch. The Fund's activities include mobilizing capital sources from demand deposits, term deposits; lending capital; contributing capital, receiving trust, acting as an agent and performing other operations in monetary activities when permitted by the State Bank; joint ventures in buying and selling treasury bonds in accordance with current laws...
During his time working at Nghi Hoa Commune People's Credit Fund from 1996 to October 2023, Nguyen Thanh Cong directed his subordinates to create fake documents and certificates, and complete many loan applications to borrow money. Cong's purpose was to take the money to pay for his daughter's study abroad, buy a house in Australia, and do business.
As of September 3, 2019, Cong's outstanding debt from the fake documents was nearly 24 billion VND. Because he could not pay the above outstanding debt, from September 4, 2019 to October 10, 2020, Cong made his own loan application, using the name of the borrower as a member of the credit fund. After that, this director directed Thanh, Ha, Phuong, and Thao to complete the loan documents for him to settle and legalize on the documents and vouchers the amount of money from the previously fake loan documents.
Thanh, Ha, Phuong, and Thao knew that the documents directed by the credit fund director were fake. However, this group of subjects still carried out procedures to create 124 fake loan documents for Cong to disburse on documents and vouchers worth nearly 24 billion VND.
The investigation agency determined that, out of 124 loan applications, Cong had paid more than 308 million VND in principal of 10 application files to the Credit Fund. This amount of money was paid by Cong before the State Bank Inspectorate of Nghe An province inspected the Nghi Hoa Commune People's Credit Fund. Therefore, the amount of money that Nguyen Thanh Cong and his accomplices must bear criminal responsibility for is more than 23.6 billion VND.
After the case was discovered by the State Bank Inspectorate of Nghe An Province and the case was transferred to the Economic Security Department of Nghe An Province Police for verification, Nguyen Thanh Cong admitted to all the crimes. Cong admitted to directing his subordinates to create fake documents to settle the money he had previously embezzled. After that, Cong borrowed and sold his house to pay off the Credit Fund for more than 9.1 billion VND.
After working with the Economic Security Department of the Provincial Police, Nguyen Thanh Cong fled to Australia by illegal means. During the investigation of the case, Nghe An Provincial Police issued a wanted notice, coordinated with other units and the Vietnamese Embassy in Australia to carry out procedures to extradite Nguyen Thanh Cong to Vietnam to serve the investigation. However, to date, there have been no results.
Based on the indictment of the People's Procuracy of Nghe An province and the evaluation of documents and evidence in the case file, as well as the statements of Cong and related persons, the People's Court of Nghe An province decided to try Nguyen Thanh Cong in absentia.
Subordinate's testimony
At the trial, the defendants admitted to the crimes as charged in the indictment. Defendant Dang Van Thanh stated that his duties at the Credit Fund were to review files, sign the appraisal report, and sign the minutes of the Credit Committee meeting. As a subordinate, the defendant followed the instructions of defendant Cong.
Defendant Tran Thi Ha Phuong - Credit Fund Appraiser stated that she had fabricated documents of the loan file including: Loan contract, Loan contract implementation tracking table, Credit meeting minutes, Loan plan, Loan disbursement request in cash, Appraisal report, Debt receipt, signed the appraisal report in the appraisal officer section...
Defendant Tran Thi Ngoc Ha - Accountant, admitted that her duty was to prepare and sign the payment vouchers. In this case, defendant Nguyen Thi Phuong Thao - Cashier, signed the payment vouchers and disbursed the loan. The defendants' actions helped defendant Cong create many fake loan documents and appropriate money from the Credit Fund.
These defendants stated that because they were subordinates and were afraid of losing their jobs, they had to follow the fund director's instructions even though they knew their actions were wrong. These four defendants stated that they did not benefit from this case. However, each defendant voluntarily paid 50 million VND.
Faced with the verdict, the defendants expressed remorse and asked the court to consider reducing their sentences so they could return to their families and rebuild their lives. At the trial, many defendants burst into tears, expressing their shame at having to appear in court. The defendants apologized to their relatives and families...
The panel of judges determined that the defendants' actions had infringed upon the property rights and proper operation of the Nghi Hoa Commune People's Credit Fund, causing negative public opinion. In this case, defendant Nguyen Thanh Cong had many mitigating circumstances: He was a person with meritorious services to the revolution because he had served in the army and was awarded the First Class Military Exploit Medal; Second Class Glorious Soldier Medal; the defendant was a Class A war invalid, with a 4/4 disability. However, the panel of judges determined that defendant Cong was the mastermind, embezzling a large amount of money, so he was sentenced to life in prison for the crime of "Embezzlement of property". Regarding the civil part, the court ordered this defendant to compensate more than 14 billion VND to the Nghi Hoa Commune People's Credit Fund.
Defendant Dang Van Thanh was an accomplice of defendant Cong. This defendant, out of deference and obedience to his superiors, committed the act of creating false loan documents. Considering the aggravating and mitigating circumstances, the panel sentenced defendant Thanh to 5 years in prison.
The two defendants, Tran Thi Ngoc Ha and Tran Thi Ha Phuong, committed the crime because they were too lenient and dependent on their superiors. Therefore, the court sentenced them to 3 years in prison. As for the defendant, Nguyen Thi Phuong Thao, she was sentenced to 2 years and 6 months in prison with a suspended sentence.
Regarding the State Bank of Vietnam Inspectorate, Nghe An branch, the investigation determined that this unit had conducted inspections and checks at Nghi Hoa Commune People's Credit Fund in 2008, 2012, and 2016. During these inspections, the inspection team did not detect any violations in the creation of fake loan records at Nghi Hoa Commune People's Credit Fund, so there was no basis for handling.
Thus, it can be seen that the sentence that the subjects received was the right person, the right crime. This is also a warning for those who, regardless of the cost, commit acts of embezzlement, will sooner or later have to appear in court.