Tan Hoang Minh with 'witchcraft' mobilizes more than 13,000 billion VND
With its “magic tricks”, Tan Hoang Minh has raised a total of more than 13,972 billion VND from bond buyers. The investigation agency determined that there were 6,631 victims.
The Investigation Police Agency - Ministry of Public Security has completed the investigation conclusion, proposed to prosecute 15 defendants in the case of "Fraudulent appropriation of property" that occurred at Tan Hoang Minh Group. Thereby, it has clarified the tricks that this Group used to mobilize an exceptionally large amount of money from thousands of victims.
According to the conclusion of the investigation agency (CQĐT), in June 2021, Tan Hoang Minh fell into a difficult situation when new projects could not be implemented, and was also affected by the Covid-19 epidemic. At that time, Tan Hoang Minh's outstanding credit debt amounted to more than 18 trillion VND.
Faced with the situation of many debts due and overdue, Mr. Do Anh Dung (Chairman of Tan Hoang Minh) agreed on the policy and directed his son Do Hoang Viet (Deputy General Director in charge of finance of Tan Hoang Minh) and his subordinates to issue individual corporate bond packages to raise capital.
Defendant Do Hoang Viet and his subordinates agreed to choose a company under Tan Hoang Minh to issue individual bonds, non-convertible bonds, without warrants, and to choose the form of bonds with collateral to create trust and attract many bond buyers.
The investigation agency proposed to prosecute Mr. Do Anh Dung, Chairman of the Board of Directors and General Director of Tan Hoang Minh Group.
Then, Tan Hoang Minh Company (the central legal entity) signed a contract to buy primary bonds, ran a "fake" cash flow to pay for the bonds; legalized the issuance plan, created "virtual" value of the bonds, legalized the bondholders to Tan Hoang Minh Company; used the reputation and brand of Tan Hoang Minh to sell bonds, mobilized and appropriated money from secondary investors, mainly people who were not professional investors.
Investigation results show that Mr. Do Anh Dung and his son directed the defendants and related individuals at Tan Hoang Minh to use 3 companies (Viet Star Company, Soleil Company and Winter Palace Company) to fabricate unreal economic activities through "fake" contracts between companies and individuals within the Group to make plans to issue individual bond packages.
Tan Hoang Minh also agreed with auditing companies to "beautify" financial reports, legalize audit reports with fully accepted opinions, to meet the conditions for issuance according to regulations; use types of assets, property rights such as land use rights, share value, contributed capital, and assets formed in the future.
In particular, there are some types of assets that have not completed all legal procedures and have not guaranteed value to be issued by valuation companies for certificates and valuation reports, recording the value of collateral assets, creating trust for bond buyers.
Tan Hoang Minh Company also signed "fake" contracts to transfer bonds, run "fake" cash flows showing payments from the Company to issuing companies, then transferred money to individuals and organizations according to the bond issuance plan to legalize and create "virtual" values for bond packages and primary bondholders for Tan Hoang Minh Company...
After raising capital from secondary bond buyers, this money was used for many different purposes, not for the purpose of issuing bonds.
5 securities companies help Tan Hoang Minh bonds appear on the market
The investigation agency clarified that through Viet Star Company, Soleil Company and Winter Palace Company, Tan Hoang Minh issued 9 separate bond packages, with a total value of VND 10,030 billion.
After becoming a primary bondholder, Tan Hoang Minh Company mobilized a total revenue of more than VND 13,972 billion from bond buyers, higher than the issuance value because Tan Hoang Minh Company divided the term into smaller terms compared to the original term, buying and selling many times.
The resulting damages in the case were determined to be more than8,807 billion VNDof 8,649 bond investors of 9 bond packages. The investigation agency determined that there were 6,631 victims (one person can buy different bond packages but is only counted as 1 victim in the case).
According to the investigation, Bao Viet Securities (BVSC), An Binh (ABS), Agriseco, KIS Vietnam, Everest (EVS) are the issuing consultants that helped Tan Hoang Minh Group's bonds appear on the market. The reason for the bonds to be issued was due to a number of violations by 5 securities companies, in the role of issuing consultants.
After receiving a request from the Investigation Police, these securities companies returned all the fees received under the contract to recover the proceeds of crime.
An Binh Securities Company has signed a contract to advise on issuance, act as registration agent, depository, and represent ownership of the VND800 billion bond package for Soleil Company.
Bao Viet Securities Company (BVS) signed a contract as a consultant and agent to issue a bond package worth 800 billion VND for Ngoi Sao Viet Company.
Agriseco Securities Company signed 3 consulting contracts to issue individual bond packages of VND 450 billion, VND 500 billion and VND 1,900 billion for Soleil Company.
Everest Securities Company signed a consulting contract to issue a VND3,230 billion bond package for the Winter Palace Company.
KIS Vietnam Securities Company signed a contract as a consultant and bond issuance agent for the VND 450 billion bond package with Winter Palace Company, acting as a bondholder representative and receiving collateral.
In addition, KIS Vietnam also signed a consulting contract and prepared the offering documents for two bond packages worth VND 1,900 billion and a bond package worth VND 1,100 billion for the Winter Palace Company. However, these bond packages were not completed yet when the State Securities Commission issued a decision to revoke them in April 2022.
