Police search a site related to an illegal loan shark ring. They identified total illegal lending of US$800 million. Photo courtesy of Quảng Nam provincial public security department

QUẢNG NAM — Police have arrested a trans-national loan shark ring of 45 members, including three Chinese masterminds, identifying total loans of VNĐ20 trillion (US$800 million), and an illegal profit of VNĐ8 trillion ($320 million).

The bust was made in the central province of Quảng Nam, in coordination with hi-tech crime police forces from the public security ministry, Hà Nội, HCM City, Khánh Hòa and the southeast region.

Of the total money, VNĐ5 trillion ($200 million) had been illegally transferred out of Việt Nam.

The provincial public security department unveiled an initial report on the case, stating that the investigation unit began legal proceedings over an alleged loan shark involved in property extortion and illegal cross-border transfer of goods and money.

The department said a group of masterminds from China worked with Vietnamese and used various ‘ghost’ companies to lend money with high interest rates for up to one million people nationwide from December 2020 to July 2023.

The ring offered illegal lending services through apps like ‘Great Vay’ and minor sites like AbcTien, cashGo, Like Tiền, ViDong, based in Alibaba Cloud, the report unveiled.

Seals and documents are seized at an office of a middle payment company involved in an illegal loan shark ring in Việt Nam. Photo courtesy of Quảng Nam Provincial Public Security Department

The loan sharks were involved in money laundering, illegal cross-border transfers and illegal debt collection.

In a search at three middleman companies and 28 sites on July 3, the police seized documents related to illegal lending, as well as cars, motorcycles and more than 100 computers, 11 pieces of real estate worth VNĐ70 billion and 88 bank accounts worth a total of VNĐ36 billion.

The Criminal Police Department under the Ministry of Public Security warned that a lot of borrowers had been recently cheated on online lending applications which seem to ask for simple procedures at first but then claim cut-throat interest rates.

The case is under investigation nationwide. VNS