Heads of pyramid scheme prosecuted for fraud

February, 20/2020 - 17:59
The investigation agency under the Ministry of Public Security has concluded a two-year probe into fraudulent activities of by companies in HCM City.


Nguyễn Hứu Tiến speaks at one of seminars the company organised to lure investment before being arrested. – VNA/VNS Photo 

HCM CITY — The investigation agency under the Ministry of Public Security has concluded a two-year probe into scams orchestrated by a number of companies led by a group of fraudsters in HCM City.

The police have proposed launching legal proceedings against four people involved in the firms.

The mastermind of the fraud was named as Nguyễn Hữu Tiến, 36, residing in Bình Chánh District of HCM City. Tiến was chairman of Thiên Rồng Việt and OTCMAX Company.

Tiến was assisted by Phạm Việt Sơn, chairman and director-general of VNCOIN Co. Ltd., in HCM City, Nguyễn Hồng Quân, the company’s IT technician, and Phạm Thị Phương Thư, the company's employee.

According to the investigation, from December 2015 to July 2018, Tiến, Sơn, Quân and Thư opened companies named Thiên Rồng Việt, OTCMAX, VINCOINS and ALLUNEE.

They provided false information to lure investors with promises of high returns.

They set up websites to advertise their businesses, as well as handed out leaflet and organised several seminars and conferences to build a reputation and attract investment from unsuspecting customers.

Tiến and his accomplices took money from investors to pay part of the principal and interest to previous investors.

They stopped paying, but appropriated investors’ money, according to the police.

Tiến and his accomplices lured 10,126 investors pouring over VNĐ460 billion (US$20 million) into their companies.

Under questioning, Tiến, Sơn, Quân and Thư confessed to illegally appropriating more than VNĐ40 billion (US$1.7 million).

The police concluded that Phạm Hữu Tiến and accomplices used the internet, phones and other electronic tools appropriate property. — VNS