Business couple arrested for defrauding 100 billion VND.
Do Hanh and his wife (residing in Ho Chi Minh City) set up a real estate business company and solicited investment from investors. This couple defrauded numerous victims of 100 billion VND.
On the evening of December 26th, the Economic Police Department of Ha Tinh Provincial Police announced that they had initiated a criminal case, indicted the suspects, and temporarily detained Do Hanh (born in 1987), General Director, and his wife Tran Thi Quynh Nhi (born in 1991), Deputy General Director of DHGROUP Real Estate Investment and Trading Joint Stock Company in Ho Chi Minh City, for the crime of "Fraudulent appropriation of property".
According to the investigating agency, from October 2021, Do Hanh and his wife acquired the legal entity of Law for Life Investment Consulting Company Limited, then renamed it DHLAND Investment Consulting Services Company Limited. In March 2022, this company changed its name to DHGROUP Real Estate Investment and Trading Joint Stock Company.
During their operations, the suspects established a business model involving real estate investment, using the legal entity DHGROUP/DHLAND to raise funds from investors in the form of loan agreements and capital contribution contracts.
To build trust with investors, Hanh and Nhi created an image of DHGROUP Company through the Internet as a real estate company specializing in real estate business, owning many properties and projects nationwide, with a large scale and branches operating in many provinces and cities.
Subsequently, the couple established two more companies in Thua Thien Hue province and Da Nang city, setting up 12 branches and representative offices in many provinces and cities nationwide, including Ha Tinh province, to organize seminars, conferences, and events to promote their image and attract investors to contribute capital to the company.
To attract investors, these individuals continuously recruit and train collaborators with a policy of paying high brokerage fees (from 2% to 7% of the investment contract value) to those who refer investors, and offer high interest rates (24%-40%/year) with a commitment to repay principal and interest weekly or monthly to investors who contribute capital.
After individuals signed contracts and deposited money into the company, the two aforementioned individuals did not conduct business but used the funds for personal purposes. They repaid the principal and interest to individuals who signed loan and investment agreements with the company (using money from later investors to pay earlier investors), and paid commission percentages to office representatives and collaborators…
Using the above tactics, Hanh and Nhi defrauded many individuals in various provinces and cities, tricking them into depositing money into the company to misappropriate assets for personal use, amounting to a large sum of money. Initial investigations have determined that more than 600 contracts were signed and money was deposited into DHGROUP Company, totaling over 100 billion VND.
The case is currently under investigation.