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Company chairperson arrested for fraud

Update: March, 04/2016 - 12:00
Police are preparing documents to prosecute Nguyen Thi Thu, 46, for fraudulently appropriating assets through an apparantly pyramid scheme. — Photo

BAC NINH (VNS) — The northern Bac Ninh Province's investigation police have prosecuted a 46-year-old woman for fraudulently appropriating assets through an apparent pyramid scheme.

Nguyen Thi Thu, a resident of Lieu Giai Ward in Ha Noi City's Ba Dinh District, was chairwoman of the Bac Ninh-based Viet Phat Development and Trading Investment joint-stock company‘s management board (Vipha Viet Nam).

Initial investigations by Bac Ninh Province Police found that Thu and several assistants set up a supplementary product multi-level trading network across the province, luring 500 local people.

The company had not been granted a licence for multi-level trading.

The company was discovered to have appropriated VND20 billion, investigators said, while the total amount involved was believed to be even more.

Thu's multi-level trading system established many agencies, expanded their network by using deposits from new sales agents towards old ones and by replicating that in four districts of Gia Binh, Luong Tai, Thuan Thanh and Que Vo.

Thu's measures to attract new members included offering retail commissions, turnover bonus and bonus for group leaders, besides tours for clients, which attracted many local residents.

Thu spread false information that several senior state officials and press agency's editors were involved in her company, aiming to lure more clients.

The local people paid hundreds of millions of dong to join the company, taking money from their savings and on loan from the bank, but they never received any commission as Thu had promised. Bac Ninh Province Police are investigating the case. — VNS

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