Suspects at the HCMC Police's Crime Investigation Division. Photo chinhphu.vn

HCM CITY — The Criminal Investigation Agency of the HCM City Police has initiated criminal proceedings in 11 cases involving timeshare frauds and indicted nearly 200 suspects – including the leaders and employees of related companies – on charges of fraudulent appropriation of assets.

Searches have so far yielded 5,563 contracts, with initial findings indicating the suspects appropriated more than VNĐ612 billion (US$23.2 million).

Specialised units of the municipal police have been coordinating with the Criminal Police Department under the Ministry of Public Security and commune-level police to review enterprises showing signs of exploiting tourism activities to commit fraud under the guise of selling holiday packages.

From June 10, the HCM City Police conducted simultaneous inspections of numerous enterprises in the tourism and holiday sector.

Investigators determined these were organised criminal rings using businesses as fronts, preying on people's desire to invest for profit or to own premium holiday packages.

The companies involved include Happy Family Holiday Tourism Trading and Service Co Ltd; Hạng Nhất Membership Joint Stock Company; YTS Co Ltd; Yes International Co Ltd; Paradise Travel Tourism and Travel Services Co Ltd; Invest Trip Co Ltd; Mariana Bay Group; Meli Club; League of Resorts (LORS); Ravi Company; and JJ Travel, among others.

According to investigators, the suspects promoted tourism packages and holiday cards with attractive incentives, promised high returns and pledged to support contract transfers or buy-backs at favourable prices.

To build trust, these businesses invested in large-scale offices and set up professional staffing structures with clearly defined roles covering customer prospecting, consultancy and customer care.

The suspects also illegally collected the personal data of customers who had previously taken part in tourism programmes or harvested data from social media to approach financially well-off people, particularly the middle-aged and elderly.

Staff then made repeated calls inviting customers to appreciation events, to receive gifts or to claim free holidays – in reality ploys to lure them to company offices for hours-long product presentations.

Suspects involved in scammy timeshare schemes in HCM CIty. — Photo courtesy of HCM City Police

At these sessions, staff presented information on profit potential, capital recovery guarantees, interest rates and the prospect of transferring contracts at a high profit.

Once customers agreed to take part, the suspects pressured them into signing pre-prepared contracts with numerous unfavourable terms.

Where customers lacked the means, the company would even guide them through taking out bank loans to continue making payments.

When customers later sought to liquidate or transfer their contracts, they were required to pay additional charges such as administrative fees, transfer fees, service-upgrade fees and deposits. Many continued to pay in the hope of recovering their capital, only to be led into signing further contracts, leaving them unable to recover their money.

Investigators have worked with hundreds of victims, including one who lost more than VNĐ8.5 billion (about US$323,000). The HCM City Police is continuing to expand the investigation, clarify each individual's role, trace the flow of funds and verify further victims.

The force has called on anyone who has fallen victim to the suspects or companies to contact the police to assist with the investigation, at the Office of the Criminal Investigation Agency at No. 47 Thành Thái, Diên Hồng Ward; the Criminal Police Division at No. 459 Trần Hưng Đạo, Cầu Ông Lãnh Ward; or the Economic Police Division at No. 14 Đoàn Như Hài, Xóm Chiếu Ward.

Police also urged the public to be vigilant against invitations to invest, own holiday packages, or buy and sell travel cards promising unusual returns, and to report any signs of fraud in a timely manner.

HCM City Police announcement came just after Hà Nội Police busted Hà Nội Police have broken up a massive fraud ring involving 27 fake tourism companies that tricked 493 victims out of over VNĐ181 billion (US$6.8 million), with total linked criminal transactions exceeding VNĐ2.7 trillion.— VNS