Arrested business couple for fraud and appropriation of 100 billion VND
Do Hanh and his wife (living in Ho Chi Minh City) set up a real estate business model, calling for investors to contribute capital. This couple defrauded and appropriated 100 billion VND from many victims.
On the evening of December 26, the Economic Police Department of Ha Tinh Police announced that the unit had just initiated a case, prosecuted the accused, 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 act of "Fraudulent appropriation of property".
According to the investigation agency, from October 2021, Do Hanh and his wife bought the legal entity Law for Life Investment Consulting Company Limited and then changed its name to DHLAND Investment Consulting Services Company Limited. By March 2022, this company changed its name to DHGROUP Real Estate Investment and Trading Joint Stock Company.
During the operation, the subjects set up a real estate business and investment company model, using the legal entity DHGROUP/DHLAND Company to mobilize money from investors in the form of loan agreements and capital contribution contracts.
To create trust for investors, Hanh and Nhi built the image of DHGROUP Company through the Internet as a company specializing in real estate business, owning many real estates and projects nationwide, with scale and branches operating in many provinces and cities.
After that, the couple continued to establish two more companies in Thua Thien Hue province and Da Nang city, established 12 branches and representative offices in many provinces and cities across the country, including Ha Tinh province to organize seminars, conferences, and events to promote the image, in order to call for investors to contribute capital to the company.
To attract investors, the subjects continuously select and train collaborators with a high brokerage payment policy (from 2% to 7% of the capital contribution contract value) to pay for referrals, offering high interest rates (24% -40%/year) and committing to pay principal and interest weekly and monthly to investors when contributing capital.
After the individuals signed the contract and deposited money into the company, the two subjects above did not conduct business but used it for personal purposes. They paid the principal and interest to the individuals who signed the loan and investment agreements with the company (taking money from the latter to pay the former), paying commission percentages to office representatives, collaborators, etc.
With the above tricks, Hanh and Nhi have defrauded many individuals in provinces and cities to deposit money into the company to appropriate assets for personal use with large sums of money. Initial determination has been that there were more than 600 contracts signed to deposit money into DHGROUP Company with the amount of more than 100 billion VND.
The case is currently under investigation.