Đỗ Anh Dũng, Chairman and General Director of Tân Hoàng Minh Group. — Photo bocongan.gov.vn

HÀ NỘI — Chairman of Tân Hoàng Minh Group Đỗ Anh Dũng, along with his son and other defendants, will go on trial on March 19 accused of fraud.

According to the investigation, Tân Hoàng Minh Group faced financial difficulties between 2021 and 2022 due to the frozen real estate market, tightened bank credits and the COVID-19 pandemic.

To come up with the money to service its debts and maintain its operation, the chairman of Tân Hoàng Minh Group is alleged to have directed his subordinates to stage fake business activities at three companies, namely Viet Star Real Estate Investment, Soleil Investment and Hotel Services and Winter Palace, and use the activities as a ground for issuing bonds.

After nine issuances with a total value of more than VNĐ10 trillion (US$407 million), they are accused of fabricating payments to make themselves primary bondholders and using the status to sell their bonds to investors, raking in nearly VNĐ14 trillion ($568 million).

The bond proceeds, however, were not used for the intended purpose specified in their issuance plan, with more than VNĐ5.1 trillion ($207 million) being allocated for paying off maturing bonds.

For their illegal bond issuance, 15 people were charged with fraud and will be brought to trial next month, including Đỗ Anh Dũng, Chairman and General Director of Tân Hoàng Minh Group; Đỗ Hoàng Việt, Dũng's son and Deputy General Director of Tân Hoàng Minh Group; Nguyễn Mạnh Hùng, Chairman of Viet Star Real Estate Investment CO LTD; Trần Hồng Sơn, Chairman of Soleil Investment and Hotel Services JSC; and Nguyễn Khoa Đức, Chairman and General Director of Winter Palace JSC.

By the time they were prosecuted, the money they took illegally from investors had amounted to VNĐ8.8 trillion ($357 million). After subtracting the VNĐ163.5 billion ($6.6 million) of bonds held by General Department Store JSC (a Tân Hoàng Minh Group's subsidy), the money they took from their victims stood at about VNĐ8.6 trillion ($349 million).

Tân Hoàng Minh Group, the defendants, and their families have returned VNĐ8.6 trillion to the police to compensate their victims.

The trial is expected to last for 20 days. The trial panel will consist of five members, chaired by Judge Nguyễn Xuân Văn. — VNS