Suspects of the fraud ring at the investigation authority headquarters. Photos thanhnien.vn

HÀ NỘI — Police have broken up a large-scale fraud operation in which suspects used fake tourism companies to sell and broker "holiday membership contracts", cheating 493 victims out of more than VNĐ181 billion (US$6.8 million).

Colonel Chu An Thanh, Head of the Economic Crime Police Division (PC03) of Hà Nội Police, disclosed the details on the highly controversial timeshare scheme at a press conference on Friday morning, where officers also briefed reporters on other notable economic and environmental cases in the city.

Chu said that from May 2025, the division had received complaints alleging that a number of tourism service companies operating in Hà Nội had committed fraud through the transfer and sale of "holiday membership contracts" issued by travel companies.

Following an investigation, Hà Nội Police initiated proceedings in 21 cases and prosecuted 187 suspects on charges of fraud and property misappropriation, including two suspects also charged with money laundering.

Police determined that between 2023 and 2025, the suspects had established 27 companies – with clearly defined roles assigned to each department – to sell and broker the rental and transfer of tourism holiday contracts on terms agreed among themselves.

The ringleaders supplied customer information and sales scripts, and paid high commissions ranging from two to 20 per cent to sales staff to recruit customers into buying, renting, or transferring tourism holiday contracts, paying deposit fees, and signing brokerage agreements.

The suspects exploited the trust, limited awareness, and fondness for gifts among members of the public – especially the elderly people – to invite them to company conferences and seminars, offering free travel vouchers with assurances that no purchase was required, no cash was needed, and that only a national identity card was necessary for identity verification.

Customers who arrived at company premises were introduced to "holiday ownership" products, with tourism packages priced at about VNĐ200 million to VNĐ900 million (US$7,500 to US$34,000), depending on the duration of the holiday and the contract term, which ranged from five to forty years.

Colonel Chu An Thanh speaking to the press.

Sales consultants offered substantial discounts to customers who agreed to sign a contract and pay a deposit on the spot. They also verbally committed to the profitability of transferring the holiday contract to a third party should the customer no longer wish to use it. Many customers, taking the consultants at their word and failing to read the contract carefully, hastily signed agreements and paid deposits.

For customers who had previously purchased holiday contracts, consultants verbally promised to broker a transfer on their behalf at a price many times higher than the contract's original value, on the condition that customers sign a brokerage agreement, commit to conducting the transfer through the company, and pay fees for various stated reasons.

The suspects continued to assure customers verbally that the company would broker the transfer of their holiday contract within about one month, while the written brokerage agreement in fact specified a term of 10 years.

When customers sought to follow up on their contracts, the companies resorted to evasion and delays, citing various pretexts to avoid fulfilling their brokerage obligations.

Police also found that the ringleaders continuously changed company names, replaced legal representatives, or established new companies to avoid accountability to former customers who came to complain and seek redress, while using the same methods to lure new victims.

All funds misappropriated from customers were used by the ringleaders to pay staff salaries and bonuses and to cover personal expenses.

As of Thursday (June 18), Hà Nội Police had searched 193 locations comprising the residences and workplaces of the suspects.

Officers temporarily seized 11 motor vehicles, company seals, 19 land-use right certificates, numerous holiday contract sales agreements, payment receipts, printers, cash-counting machines, three savings books valued at VNĐ12 billion (US$455,000), and more than VNĐ17 billion (US$645,000) in cash.

More than VNĐ60 billion (US$2.2 million) in the suspects' bank accounts was frozen, and transactions involving assets registered in the names of implicated companies were suspended.

Hà Nội Police have preliminarily estimated that the total amount of money linked to the suspects' criminal conduct exceeds VNĐ2.7 trillion (US$102.5 million).

Police are continuing to expand the investigation to fully clarify the case and identify all parties involved, with a view to prosecuting offenders in accordance with the law and recovering the maximum possible assets for return to victims. — VNS