Authorities busted a large-scale network producing and distributing counterfeit cosmetics using chemicals.
On the evening of June 14th, the Tay Ninh Provincial Police announced the dismantling of a large-scale counterfeit cosmetics production and trading operation led by LTMD (born in 1991, residing in Ninh Tho neighborhood, Ninh Son ward, Tay Ninh city). Notably, the counterfeit cosmetics were sold in provinces and cities nationwide.
According to initial investigations, the Anti-Corruption, Economic Crime, and Smuggling Investigation Department of the Tay Ninh Provincial Police discovered that LTMD and NTT (born in 1992, residing in Ward 4, Duong Minh Chau town, Duong Minh Chau district) regularly used social media to livestream and sell cosmetics at very low prices. Suspecting that D. and T. might be colluding to produce and sell counterfeit cosmetics, the police launched a special investigation.
Through investigative work, at 11:00 AM on June 13th, the Tay Ninh Provincial Police, in coordination with the Provincial Market Management Department, inspected a vehicle with license plate 53S-0664 driven by LVT (residing in Tam Long hamlet, Tri Binh commune, Chau Thanh district). During the inspection, authorities discovered 32 cardboard boxes containing cosmetics (mixed creams), weighing 1,200 kg, without invoices or documents proving their origin. A quick investigation revealed that the goods belonged to D, who hired T to transport them to Ho Chi Minh City for distribution to another party.
The Tay Ninh Provincial Police quickly dispatched a task force to inspect D.'s house and warehouse in Ninh Son Ward, Tay Ninh City. There, the police discovered two people working for D. in the processing and production of cosmetics. The police seized evidence including: 20 plastic containers of chemicals with foreign labels; 10 bags of 50kg solid chemicals with foreign labels; 200kg of finished cream; 100 bottles of various chemicals containing liquid solutions; over 8 cosmetic cream mixing and dispensing machines; 3 cars; and numerous books, stamps, and anti-counterfeiting labels related to the case.
By the time they were discovered, D. and T. had sold over 100,000 orders to consumers, earning nearly 10 billion VND in profit. The seized goods are estimated to be worth approximately 3.5 billion VND. During their business operations, the suspects did not disclose or register their product trademarks or declare and pay taxes to the authorities.
During the investigation, D. confessed that since 2020, she had been involved in the processing, production, and sale of counterfeit cosmetics. The raw materials she purchased were mainly fragrances, chemical powders of unknown origin, alum powder, and solvents readily available on the market. She then used her purchased machinery and hired workers to mix and produce the finished products. Once finished, D. sold them to T. for prices ranging from 50,000 to 100,000 VND per kilogram, depending on the type of cosmetic. T. then hired her workers to affix labels and sell the products on e-commerce platforms and via COD (cash on delivery) services at prices ranging from 200,000 to 650,000 VND per kilogram.
Without giving the suspects time to conceal their criminal activities, the Tay Ninh Police quickly dispatched another task force to inspect the NTT business establishment, seizing evidence including: 13 types of cosmetics with over 550 products, along with many machines and electronic equipment used in the sale of counterfeit cosmetics.
At T.'s two warehouses, the police discovered four other individuals processing, labeling, and packaging products; numerous cosmetic bottles weighing approximately 10,000 kg in total; 20 cardboard boxes containing many unlabeled cosmetic bottles weighing 800 kg in total; two label printing machines; and many empty boxes and containers used for packaging… All of these items lacked invoices or documents proving their origin.