How did the owner of My Hanh Group defraud and mobilize more than 1,200 billion VND?

The Investigation Police Agency of Cau Giay District Police (Hanoi City) has prosecuted and issued an order to temporarily detain Pham My Hanh (43 years old) for 4 months for the crime of Fraudulent appropriation of property.

Speaking to reporters, Lieutenant Colonel Nguyen Phi Hung, Captain of the Economic Police Team of Cau Giay District Police, said that through the work of grasping the area, the district police received information about unusual signs in the capital mobilization of My Hanh Group Joint Stock Company.

Conducting verification, the investigation agency has so far determined that this company's capital mobilization activities show signs of violating the law.

According to the commander, My Hanh Group Company, with Pham My Hanh as Chairman of the Board of Directors and General Director, operates in the field of tree planting and business activities related to Ngoc Linh ginseng.

Lieutenant Colonel Nguyen Phi Hung (Photo: Hai Nam).

Based on the above business activities, due to the need for capital, Hanh and his colleagues organized capital mobilization from investors in the period of 2020-2022. Under Hanh's direction, this company launched many promotions about its activities, "drawing" out project ideas to attract investors.

In addition, My Hanh also promised and committed to paying interest rates of 24-48%/year to investors. Lieutenant Colonel Hung said that this interest rate is "very attractive compared to the general interest rate level".

Working with investors, My Hanh Group Company offers 3 types of contracts: Contract for capital contribution to grow Ngoc Linh ginseng, Loan contract and Contract for selling Hanh's shares in the company.

Initially, Cau Giay District Police determined that there were more than 1,000 investors who contributed more than 1,200 billion VND to this enterprise.

Defendant Pham My Hanh (Photo: Baodautu).

Pointing out Hanh's tricks, the commander of the Economic Police Team of Cau Giay District Police said that the money from the above-mentioned capital mobilization was not added to the capital for production and business activities, not accounted for in the company's finances, but transferred separately to Hanh's account.

Of this 1,200 billion VND, Hanh only used about 1% for production and business; the rest was used to pay interest on short-term contracts, personal expenses, and to buy real estate in her name.

Up to now, there are cash flows that Hanh and the company have used but have not been explained to the investigation agency, the purpose of use is unclear.

According to Lieutenant Colonel Nguyen Phi Hung, My Hanh Group Company "inflated" the value of the enterprise and its production and business activities; "drawn" scenarios and expectations for the enterprise that were not true to reality; arbitrarily changed and increased the value of the enterprise to offer interest rates much higher than the efficiency of production and business.

An agent displaying Ngoc Linh Ginseng of My Hanh Group Company (Photo: Hong Nhung).

The company has now lost the ability to pay the amount of money raised from investors. The investigation agency has searched the residence, workplace, warehouse of the defendant and My Hanh Group Company, confiscating many documents and exhibits related to the case.

The Commander of the Economic Police Team of Cau Giay District Police said that during the verification and investigation process of the authorities, some investors are still waiting for Hanh to return their money.

Authorities request that victims and investors cooperate with the police in reporting Hanh's actions so that Cau Giay District Police can clarify the scope, scale, and nature of the defendant's crimes, while ensuring the rights of the victims.

Ginseng garden advertised on the company's website (Photo: MHG).

In addition, Lieutenant Colonel Hung also requested organizations and individuals who have cooperated, advanced, and received money with Pham My Hanh in civil transactions to cooperate with the investigation agency to recover the money. The authorities determined that this money was also the money Hanh illegally appropriated in the case.

"We will resolutely investigate the case, expand the investigation into the subjects who helped Hanh embezzle money, thoroughly identify the sources of money Hanh used, recover it, and ensure the rights of the victims," ​​said Lieutenant Colonel Nguyen Phi Hung.

Source: https://dantri.com.vn/phap-luat/ba-chu-tap-doan-my-hanh-lua-dao-huy-dong-hon-1200-ty-dong-nhu-the-nao-20231110120752094.htm