The defendants at the trial on Wednesday in Hà Nội. — Photo tuoitre.vn

HÀ NỘI — The Hà Nội People’s Court on Wednesday opened the first-instance criminal trial of Trần Thế Mạnh, alleged ringleader of a ring accused of smuggling and illegally transferring US$519 million to China, along with 11 other defendants.

All 12 defendants face charges of smuggling, illegally transporting currency across the border, forging documents issued by agencies and organisations, as well as tax evasion.

Under the indictment, motivated by financial gain, Mạnh, 44, from Hoài Đức Commune, Hà Nội, and his sister Trần Thị Nga, 49, along with their accomplices committed a series of offences in the northern mountainous province of Lạng Sơn and Hà Nội between 2021 and 2023.

Between 2018 and 2023, Mạnh either established seven companies in his own name or used relatives as nominees to establish them.

After the companies were set up, those acting as nominees handed over their signatures and company seals to Mạnh for management.

Mạnh and Nga used the companies to carry out import procedures for household goods, domestic appliances and electronic equipment from China into Việt Nam.

They also provided import, customs clearance and goods transportation services for Chinese traders seeking to bring goods into Việt Nam for commercial purposes.

From May 2021 to May 2023, Nga allegedly forged 376 documents, including applications for State inspection of the quality of imported goods issued by the Division of Standards, Metrology and Quality under the province’s Department of Science and Technology; as well as applications for inspection of imported food; notices confirming whether food products met import requirements issued by the National Institute for Food Safety Testing under the Ministry of Health.

The forged documents were used to legalise customs dossiers for 250 consignments of goods smuggled from China into Việt Nam through the Chi Ma and Hữu Nghị international border gates in the province, with a total value of more than US$4 million, equivalent to over VNĐ97 billion.

The total value of goods allegedly smuggled by Nga and Mạnh exceeded VNĐ904 billion (US$35.4 million).

Regarding the illegal transportation of currency, the indictment states that between November 2021 and May 2023, Mạnh masterminded and instructed defendant Trần Thúy Hằng, from Hà Nội, to forge 3,270 foreign trade contracts and contract appendices with Chinese companies.

The documents were used to complete dossiers for the illegal transfer of more than US$519 million (over VNĐ12.138 trillion) to China.

Mạnh allegedly reused import contracts and rotated customs declarations that had already been cleared to create ostensibly legitimate documentation for illegally transferring money to Chinese nationals and numerous individuals in Việt Nam.

Under the alleged scheme, customers provided details of the intended beneficiaries and an amount of Vietnamese đồng equivalent to the foreign currency they wanted transferred.

Mạnh then hired four defendants who worked as accountants for the companies to sign and legalise documents and payment records, foreign-exchange purchase contracts and payment orders, which were subsequently submitted to banks.

Mạnh opened 21 personal accounts at 21 domestic commercial banks to receive money from customers seeking to transfer funds overseas.

He also opened payment accounts for five companies at 29 domestic banks to conduct international payments.

After contacting the banks and opening the accounts, Mạnh created Zalo groups with bank employees and accounting staff.

Bank employees posted daily US dollar exchange rates in the groups, after which Mạnh and Hằng allegedly selected banks offering the lowest rates to purchase US dollars for transfer to China on behalf of customers.

The money destined for China was transferred to multiple accounts at customers’ request.

Mạnh therefore instructed Hằng to forge foreign trade contract appendices and tripartite contracts to add the beneficiary accounts to the documents.

During the investigation, investigators found no documents or evidence indicating that bank officials had colluded or reached agreements with the defendants to facilitate the illegal transfer of money overseas.

No violations or misconduct by bank officials were uncovered, leaving insufficient grounds for prosecution, according to the indictment.

The indictment also states that in Hà Nội between 2022 and 2023, a business household operated by Đinh Văn Hậu generated more than VNĐ73 billion (US$2.9 million) in revenue.

Hậu allegedly failed to maintain accounting records or declare and pay value-added tax and personal income tax, causing losses of more than VNĐ1 billion (US$39,200) to the State budget. — VNS