Prosecution of 'fraudulent corporation' Lien Ket Viet

January 26, VThe Supreme People's Procuracy issued an indictment to prosecute Le Xuan Giang (Chairman of the Board of Directors of Vietnam Lien Ket Production and Trade Joint Stock Company - Lien Ket Viet); Le Van Tu (General Director of Lien Ket Viet), Nguyen Thi Thuy (Deputy General Director of Lien Ket Viet) along with Le Thanh Son, Trinh Xuan Sang, Vu Thi Hong Dung and Nguyen Xuan Truong (all members of the Lien Ket Viet market development group) for the crime of Fraudulent appropriation of property, according to Article 139 of the 1999 Penal Code.

According to the indictment, Lien Ket Viet was licensed to conduct multi-level marketing business with goods manufactured by BQP Medical Equipment Corporation (BQP Company).Taking advantage of this, from March 2014 to November 2015, the defendants created and provided false information that Lien Ket Viet was a subsidiary of the Ministry of National Defense; the Ministry of National Defense was a company of the Ministry of National Defense.

Giang boasted that he and the company's leaders are officers of the Ministry of National Defense; the business products are joint ventures and production links with prestigious enterprises and agencies of the Ministry of National Defense that have been tested and put into use at central hospitals.

Giang and his subordinates forged certificates of merit and recognition from provinces and cities to make people believe that this company operates legally, has high profits, and makes many contributions to society...

After gaining trust, Giang and his subordinates lured investors to join the multi-level marketing system to earn commissions. They only needed to pay money into Lien Ket Viet without having to sell any goods to become a distributor of the company; one person could have his or her name on many product codes.

Giang and his accomplices set up a pyramid-like reward model, taking money from later participants to pay earlier participants... The bonus and commission amounted to 65% of the total amount collected by the victims themselves.

The defendants implemented 15 promotional programs to stimulate demand throughout the multi-level marketing system, running in parallel with commission payments, offering large promotions such as paying 7 million VND (later 8.6 million VND) to Lien Ket Viet and receiving a bonus of up to 409 million VND.

Along with that, if they attract many people to participate, the individual will receive a reward of a car worth 1 billion VND, an apartment worth 1.8 billion VND along with an overseas tour. After that, Lien Ket Viet will promote them to deputy manager, manager, director, with a monthly salary, and a percentage of the money collected from the victims up to 10 billion VND/month.

After one year of operation, by November 2015, Giang and his accomplices had expanded their network to 34 branches and representative offices in 27 provinces and cities. They attracted more than 66,000 victims in 49 provinces to participate and pay Lien Ket Viet nearly 2,100 billion VND.

Of which, Giang and his accomplices appropriated more than 1,000 billion VND, the rest was used to pay commissions, bonuses, and maintain the operating apparatus.

According to the prosecution, Giang played the role of mastermind, leading the implementation of all acts and methods of fraud to appropriate money from the victims. Giang is responsible for compensating nearly 918 billion VND (including 862 billion VND for personal use and more than 55 billion VND for bonuses to agents).

Thuy was an advisor who directly provided methods and tricks to help Giang commit fraud, so she had to pay compensation of more than 38 billion VND.Tu helped Giang directly manage Lien Ket Viet Company, participated in developing methods and tricks to defraud victims and, together with Thuy, organized the implementation. The defendant Tu is responsible for compensating nearly 62 billion VND.The remaining defendants must pay compensation from four billion to 17 billion.

To date,The investigation agency has seized more than 148 billion VND.