|Villa of Lam Ngoc Khuan built by the fraud-acquired money. — Photo bao moi.com
SOC TRANG (VNS) — The People Court in southern Soc Trang Province has begun hearing a case of fraud in the Phuong Nam Food Processing Company.
The case, involving acquisition of property and violation of credit regulations, is considered the biggest-ever such case in the Cuu Long (Mekong) Delta provinces.
As per case papers, the director of the company, Lam Ngoc Khuan, and his daughter, Lam Ngoc Han, a Vietnamese American, were the masterminds behind the fraud as they had given instructions to the chief accountant, Lam Minh Man, and vice director, Trinh Thi Hong Phuong, to carry out fraudulent acts.
The accused forged financial reports to acquire VND785 billion (over US$36 million) from five banks: Viet Nam Development Bank – Soc Trang Branch, Lien Viet Post Bank – Hau Giang Branch, Sacombank – Soc Trang branch, An Binh Bank – Bac Lieu Branch, and Vietcombank – Soc Trang branch.
Indulging in similar act of cheating, Khuan and Han acquired another VND700 billion (US$32 million) from three other banks.
The investigators are pursuing the cases separately.
Having come into possession of this ill-gotten wealth, Khuan built a huge villa in Soc Trang Province, invested in real asset and spent on personal shopping.
In November 2011, Khuan and his wife left for the United States to seek medical treatment, and have been staying there since then.
His daughter, Han, operated the company in his place till July 2012 and then returned to the US.
The investigators discovered the debts that the Phuong Nam Company owed to the eight banks that had amounted to VND1.72 trillion (US$80.3 million) as of October 31, 2012.
The accused, Man and Phuong, were prosecuted for fraud and acquiring property with illegally begotten wealth.
The investigating police released international arrest warrants for Khuan and Han.
Twenty-five officials of the banks were prosecuted for negligence in evaluating the company's loan applications. They face charges of violating credit regulations.
The court is expected to hear the case till July 31. — VNS