Some of the 51 suspects detained by HCM City police in an expanded investigation into an alleged timeshare fraud scheme involving Metaland Investment Development Co. Ltd. — Photo courtesy of HCM City Police

HCM CITY — Police in HCM City have arrested 51 executives, managers and employees of a company accused of operating a fraudulent holiday ownership scheme, the latest development in a widening investigation into alleged timeshare scams that authorities say have defrauded victims of hundreds of billions of đồng.

The Criminal Investigation Agency under HCM City Police said on Saturday it had launched criminal proceedings against Metaland Investment Development Co. Ltd. on charges of fraudulent appropriation of assets and detained 51 suspects, including company shareholders, executives, managers and sales staff.

The arrests expand an ongoing crackdown on businesses accused of using tourism and holiday ownership schemes as fronts for fraud.

Earlier this month, HCM City Police said they had initiated criminal proceedings in 11 cases involving timeshare-related scams and indicted nearly 200 suspects linked to multiple companies.

Authorities said searches had uncovered 5,563 contracts, with preliminary findings indicating that victims had lost more than VNĐ612 billion (US$23.2 million).

According to investigators, Metaland was established using methods similar to those employed by other companies already under investigation.

Police said evidence showed that after establishing Times Holdings Investment JSC in Hà Nội, Ngô Quang Chiến and his associates later set up Metaland in HCM City to expand their operations. Chiến has already been arrested by Hà Nội police in a related case.

Investigators alleged that Metaland used telesales staff to invite customers to promotional events offering complimentary holiday vouchers and gifts before marketing holiday ownership packages that promised high returns, easy transferability and other financial benefits.

Police said the company inflated the listed prices of holiday packages before offering substantial discounts to create the appearance of exceptional value.

After customers made payments, the company allegedly returned small sums described as rental income to build trust and encourage further investment, despite not carrying out the promised rental activities.

The HCM City Police said the investigation remained ongoing and that authorities were continuing to identify additional companies and individuals linked to the alleged fraud network.

The crackdown was underway almost simultaneously, but separately, with similar investigation by Hà Nội police into timeshare scam, which recently uncovered a network of 27 companies accused of defrauding 493 victims of more than VNĐ181 billion ($6.8 million). — VNS