Illegal business tricks of "Mr. Kien"
Having established three companies with functions and registered business lines unrelated to financial investment, Mr. Nguyen Duc Kien used the legal entities of these companies to participate in bond issuance and financial investment (including buying bank shares) in violation of regulations.
According to the announcement of the Ministry of Public Security's investigation police agency, the prosecution and temporary detention of Mr. Nguyen Duc Kien for "illegal business" was due to the determination that this defendant had committed a number of illegal acts at three companies: B&B Investment and Trade Joint Stock Company, ACB Hanoi Investment Joint Stock Company and Asia Financial Investment Company Limited. It is known that these companies were all established by Mr. Nguyen Duc Kien with "impressive" charter capital.
Building 57B Phan Chu Trinh (Hoan Kiem District, Hanoi) according to the business license is the office of ACB Hanoi Investment Joint Stock Company and Asia Financial Investment Company Limited - Photo: Nguyen Khanh.
Establishment of three companies with charter capital of 2,300 billion VND
According to the business registration certificate issued by the Department of Planning and Investment, B&B Investment and Trade Joint Stock Company has its business headquarters at 63 Luong Su C, Van Chuong Ward, Dong Da District, Hanoi, with a charter capital of 1,500 billion VND. The company registered its business on December 8, 2008.
The registered business lines include advertising and market research; trading in gold, silver and precious stones (excluding import and export of raw gold); civil and industrial construction, housing construction, and parking lots. The company has three founding shareholders: Ms. Nguyen Thuy Huong, Mr. Nguyen Duc Kien and Ms. Dang Ngoc Lan. Mr. Kien contributed VND990 billion (66%) and is the Chairman of the Board of Directors.
On March 21, 2008, Mr. Kien established Asia Financial Investment Company Limited with a capital of 500 billion VND contributed by two members, Mr. Nguyen Duc Kien (accounting for 99% of the contributed capital) and Ms. Nguyen Thuy Huong, with headquarters located at 57B Phan Chu Trinh, Phan Chu Trinh Ward, Hoan Kiem District, Hanoi.
According to the business registration certificate re-issued by the Hanoi Department of Planning and Investment on March 12, 2012, the 10 registered business lines include: hotel and restaurant business; golf course construction and business; traffic, bridge and road construction, civil and industrial; management of tangible and intangible assets of enterprises; foreign exchange agency; import and export of gold and jewelry; buying and selling of gold, silver and precious stones...
On November 10, 2006, Mr. Kien established ACB Hanoi Investment Joint Stock Company, headquartered at 57B Phan Chu Trinh, Hanoi, with a charter capital of 300 billion VND contributed by three shareholders: Mr. Nguyen Duc Kien, Mr. Huynh Van Son and Mr. Tran Ngoc Thanh. Mr. Kien himself contributed 70% of the capital and held the position of Chairman of the Board of Directors.
This company is directed by Mr. Tran Ngoc Thanh with eight business lines including investment in construction and business of sports areas, golf courses, tennis courts, swimming pools; investment and business of tourist areas, hotels, restaurants, motels; gold trading; real estate management; real estate brokerage, auction, land and houses...
Thus, the total charter capital of these three companies is up to 2,300 billion VND, all under the operational direction of Mr. Kien.
Create a fake business plan to borrow money
Although the three companies mentioned above do not have financial investment functions, Mr. Nguyen Duc Kien still uses their legal entities to participate in the financial sector. With his huge charter capital and reputation in the financial and banking sector, Mr. Kien has built the image of economically strong companies with business capabilities that bring high economic efficiency.
From there, Mr. Kien created large business plans to increase the value of the company's assets, creating financial prestige. Currently, the investigation agency suspects that these business plans are all "fake" plans drawn up to gain the trust of customers and banks when investing in Mr. Kien's company as well as for Mr. Kien to use in illegal financial investments.
After building the image and reputation of the companies he “created”, in 2008 and 2010, Mr. Kien repeatedly issued bonds of these companies, selling them to banks to earn hundreds of billions of dong. Mr. Kien gave this money to his family members to use to buy back shares of many other banks. After buying shares of other banks, Mr. Kien used these shares as collateral to borrow money from the bank where he sold the bonds to get money to repay the bank and use for other personal purposes.
The investigation agency suspects that the amount of money that Mr. Kien borrowed from the bank in the above form is up to thousands of billions of VND. This behavior is determined to be "illegal business" because the companies established by Mr. Kien do not have the function of doing business or making financial investments.
According to TTO-M
