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Police make arrests over gold trading

Update: January, 15/2015 - 09:38
Established in 2009, Ha Noi Golden Investment JSC created a virtual trading floor for gold and currency trades. Investors would use real money to buy virtual points that they could use to trade on www.hgi.com.vn. — Photo Vnexpress

HA NOI (VNS) — The Ha Noi Police arrested the owners of a Ha Noi-based company for illegally operating an underground gold trading floor after they received about VND270 billion (US$12.6 million) from investors and failed to pay the promised returns.

Phung Quoc Huy, general director of Ha Noi Golden Investment JSC, was caught on Tuesday along with several shareholders and accomplices. The police also searched the company's headquarters on Ngoc Khanh Street.

The Ha Noi Police, in co-operation with the Ministry of Public Security's Hi-tech Criminal Prevention Department, discovered that the company had illegally mobilised capital from more than 3,030 investors.

Established in 2009, Ha Noi Golden Investment JSC created a virtual trading floor for gold and currency trades. Investors would use real money to buy virtual points that they could use to trade on www.hgi.com.vn.

The company mobilised capital via investment trust contracts that provided a monthly interest rate of 1.5-2 per cent. Employees were promised a 0.3-2.5 per cent commission on investments if they managed to attract investors.

Investors were from all walks of life and many even encouraged their relatives to join the virtual trading floor, despite lack of knowledge in the field, said Ha Thi Hang, deputy head of the Ha Noi Police's hi-tech crimes division.

The police are gathering evidence to prosecute those involved for illegal gold trading.

Unlicensed gold trading is banned in Viet Nam. However, many companies continue their businesses by creating underground floors, particularly on the Internet.— VNS

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