|Le Hoa Binh, former chairman of the May 1 Construction and Service Co. management board, and Nguyen Thi Kim Thoa, the company's former vice CEO and chief accountant, were sentenced to life imprisonment yesterday for fraudulent appropriation of property.— Photo cand
HA NOI (VNS)— Le Hoa Binh, former chairman of the May 1 Construction and Service Co. management board, and Nguyen Thi Kim Thoa, the company's former vice CEO and chief accountant, were sentenced to life imprisonment yesterday for fraudulent appropriation of property.
The final judgment was reached yesterday at the Ha Noi People's Court after five days of prosecution. According to the verdict, the two men appropriated property worth nearly VND800 billion (US$38 million) from more than 460 victims. Their accomplice, Nguyen Manh Cuong, the company's former CEO, was sentenced to 17 years' imprisonment.
Two former employees, Huynh Nguyen Quoc Duy and Dao Duy Phong, were sentenced to five and six years in jail respectively for using their professional positions for illegal purposes.
In 2010, Cuong signed a contract with Cienco 5 Real Estate Development Co Ltd under Civil Engineering Construction Corporation 5. The contract allowed Cienco 5 to borrow VND200 billion (over $9.5 million) from May 1 Company for project investment during a term of 18 months with interest of 1 per cent per month.
With the contract signed, May 1 Company had the right to participate in the implementation of an investment cooperation contract in the Thanh Ha A Urban Area – of which Cienco 5 is the chief investor. The leaders of May 1 Company then took advantage of the contract to mobilise funds from individuals, promising them the land use rights.
Yet the May 1 company failed to transfer the funds following the signed contract. As a result, Cienco 5 decided to terminate its loan contract with the company.
Binh, former chairman of the Management Board, however, concealed the information and continued to use the terminated contract to mobilise funds. He and his accomplices signed 463 fund transfer contracts, collecting about VND790 billion ($37.6 million) from investors. The group then used the money to purchase shares from several companies, pay back debts from banks and make personal purchases.
The court concluded that Binh was the mastermind behind the crime, while Thoa was the active accomplice.
Prior to judicial proceedings, the police froze the bank account of May 1 Company to return the victims' money, but more than VND200 billion ($9.5 million) has not yet been repaid.
Binh and Thoa were asked by the court to pay the remaining money to the victims. — VNS