Defendant Đỗ Anh Dũng, former chairman and general director of Tân Hoàng Minh Group, at the court. — VNA/VNS Photo Phạm Kiên

HÀ NỘI — The first-instance trail has begun at the People's Court of Hà Nội with 15 defendants in the dock facing fraud charges involving Tân Hoàng Minh Group, one of the most high-profile case in recent times.

Those accused are Đỗ Anh Dũng, former chairman and general director of Tân Hoàng Minh; Đỗ Hoàng Việt, Dũng's son and former deputy general director of Tân Hoàng Minh; Nguyễn Mạnh Hùng, former chairman of Viet Star Real Estate Investment Co Ltd; Trần Hồng Sơn, former chairman of Soleil Investment and Hotel Services JSC; and Nguyễn Khoa Đức, former chairman and general director of Winter Palace JSC, along with other defendants.

They were indicted by the Supreme People's Procuracy for the crime of "Fraudulent appropriation of property" as stipulated in Article 174, Clause 4 of the Penal Code.

According to the indictment, Tân Hoàng Minh Group faced financial difficulties between 2021 and 2022.

To come up with the money to service its debts and maintain its operation, the former leader of Tân Hoàng Minh Group 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.

They issued nine corporate bond packages, totaling more than VNĐ10 trillion (US$407 million) to raise funds for the group.

The defendants are accused of conspiring in deceptive practices, fabricating business activities, and manipulating financial reports to create a facade of legitimacy. This scheme defrauded 6,630 investors of over VNĐ8.6 trillion (about $348 million), diverting funds from their intended purpose.

Đỗ Anh Dũng, identified as the key figure by the Prosecutor's Office, oversaw and made pivotal decisions regarding economic activities at Tân Hoàng Minh Group and its subsidiaries.

Dũng instructed his son, Đỗ Hoàng Việt, former deputy general director of finance, to secure capital for the group's operations and investments through private placement of bonds. He also approved various stages of the bond issuance process, including company selection, issuance value, collateral assets, and interest rates.

As a result, they defrauded over VNĐ8.6 trillion from 6,630 victims through the issuance of nine bond packages.

Among the 15 defendants, seven are on bail, while eight are in temporary detention.

The court has summoned 6,630 victims, including investors, nearly 100 individuals, and representatives of relevant organisations. Over 1,000 victims attended the opening session in Hà Nội City.

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