From right: Russian national Verevkin Vladimir, Đỗ Minh Hải and other suspects after their arrest in connection with an alleged online lending scheme. — Photo courtesy of the Ministry of Public Security

HCM CITY — Vietnamese prosecutors have accused a Vietnamese financial consultant and six others, including a Russian national, of operating an online lending network that disbursed more than VNĐ3.7 trillion (US$140.2 million) while charging effective interest rates of up to an extreme 13,500 per cent a year.

The HCM City People's Court is scheduled to hear the case on Friday (July 10) against the seven defendants, who are charged with usury in civil transactions under Việt Nam's Penal Code.

Prosecutors identified Đỗ Minh Hải, 41, a financial consultant with a master's degree, as the alleged mastermind behind the operation.

Among the other defendants is Russian citizen Verevkin Vladimir, 36, who prosecutors allege oversaw the operation's automated calling and risk management systems in Việt Nam.

According to the indictment, Hải and two Russian nationals established a company in Singapore in late 2016 to organise a large-scale consumer lending business through the ATM Online platform.

To operate in Việt Nam, the group allegedly used two local companies registered as a financial consultancy and a pawnshop business.

Prosecutors said the defendants used the website atmonline.vn to automate loan approvals and disbursements while disguising loans as electronic asset pledge contracts.

Although the contracts stated an annual interest rate of 12 per cent, investigators allege the operators imposed additional service, consultancy and platform fees, pushing borrowers' actual costs to between nearly 125 per cent and more than 13,500 per cent annually, which is between six and 675 times the legal limit.

According to prosecutors, the operation disbursed more than VNĐ3.7 trillion through 738,933 loan transactions between 2019 and 2023.

The indictment also refers to other Russian nationals allegedly involved in the operation, but authorities said those individuals had already left Việt Nam and have not yet been questioned.

Investigators said further action would be considered if additional evidence emerges.

The case is among the latest prosecutions targeting online lending platforms and so-called "black credit" operations in Việt Nam. — VNS